Oil slips as Trump's 50-day deadline for Russia eases supply fears
NEW YORK: Oil prices dropped by less than 1% on Tuesday after US President Donald Trump's 50-day deadline for Russia to end the war in Ukraine and avoid sanctions eased concerns about any immediate supply disruption.
Brent crude futures settled down 50 cents, or 0.7%, at US$68.71 a barrel. US West Texas Intermediate crude futures were down 46 cents, or 0.7%, at US$66.52.
"The focus has been on Donald Trump. There was some fear he might target Russia with sanctions immediately and now he has given another 50 days," said UBS commodities analyst Giovanni Staunovo. "Those fears about an imminent additional tightness in the market have dissipated. That's the main story."
Oil prices had climbed on the potential sanctions but later gave up gains as the 50-day deadline raised hopes that sanctions could be avoided.
In the event the proposed sanctions are implemented, "it would drastically change the outlook for the oil market," analysts at ING said in a note.
"China, India and Turkey are the largest buyers of Russian crude oil. They would need to weigh the benefits of buying discounted Russian crude oil against the cost of their exports to the US," ING said.
Trump announced new weapons for Ukraine on Monday and had said on Saturday that he would impose a 30% tariff on most imports from the European Union and Mexico from August 1, adding to similar warnings for other countries.
Tariffs raise the risk of slower economic growth, which could reduce global fuel demand and drag oil prices lower.
Also on the tariff front, Brazil will work to get the US to reverse "as quickly as possible" the 50% tariff it announced on all goods from that country, but does not rule out asking for more time to negotiate, Vice President Geraldo Alckmin said.
China's economy slowed in the second quarter, data showed on Tuesday, with markets bracing for a weaker second half as exports lose momentum, prices continue to fall and consumer confidence remains low.
Tony Sycamore, an analyst at IG, said economic growth in China came in above consensus, largely because of strong fiscal support and the frontloading of production and exports to beat US tariffs.
"The Chinese economic data was supportive overnight," said Phil Flynn, senior analyst with Price Futures Group. Elsewhere, oil demand is set to remain "very strong" through the third quarter, keeping the market balanced in the near term, the Organization of the Petroleum Exporting Countries' secretary general said, according to a Russian media report.
In US supply, US crude stocks rose by 839,000 barrels last week, market sources said, citing American Petroleum Institute figures on Tuesday.
US government data on stockpiles is due on Wednesday. — Reuters
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
17 minutes ago
- The Sun
Russia intensifies drone attacks on Ukraine despite Trump peace warning
KYIV: Russia escalated its military offensive against Ukraine, launching hundreds of drones and a ballistic missile in a series of overnight attacks. The strikes resulted in at least one fatality and left more than two dozen wounded, with critical infrastructure damaged in multiple regions. Ukrainian officials reported that over 400 drones were deployed, alongside an Iskander ballistic missile fired from Crimea. The attacks targeted cities including Vinnytsia, Kharkiv, and Kryvyi Rig, where power and water supplies were disrupted. The bombardment follows US President Donald Trump's ultimatum for Russia to agree to a peace deal within 50 days or face severe sanctions. Despite the warning, Moscow has shown no signs of de-escalation, with no new peace talks scheduled since last month. In Kryvyi Rig, President Zelensky's hometown, at least 15 people were injured, including a 17-year-old boy in critical condition. Mayor Oleksandr Vilkul described the attack as unprecedented, citing simultaneous strikes by a ballistic missile and Iranian-designed Shahed drones. Russia's intensified campaign comes amid stalled ceasefire negotiations, with its forces continuing battlefield advances while bombarding Ukrainian cities. Trump recently announced additional US military support for Ukraine, expressing frustration over Russia's refusal to halt hostilities. – AFP
Malay Mail
17 minutes ago
- Malay Mail
Russia fires hundreds of drones at Ukraine, defying Trump warning
KYIV, July 16 — Russia fired hundreds of drones, artillery and a ballistic missile at Ukraine between late Tuesday and early Wednesday, Ukraine said, defying calls by Donald Trump to reach a peace deal. The attacks left one woman dead and wounded more than two dozen people across multiple regions, while a missile attack cut power and water in Ukrainian President Volodymyr Zelensky's home city of Kryvyi Rig, according to authorities. The bombardment came two days after US President Trump threatened to impose severe sanctions against the country unless it reached a peace settlement within 50 days to end its three-year war on Ukraine. Ukrainian and Russian officials last met for direct peace talks more than a month ago, and no further meetings have been scheduled despite the Kremlin saying it is open for more talks. Russia fired at least 400 drones at Ukraine between late Tuesday and early Wednesday, as well as an Iskander ballistic missile launched from the annexed Crimean peninsula, the Ukrainian air force said. Overnight drone attacks on the central Ukrainian city of Vinnytsia left eight wounded, while three were wounded in an attack on the northeastern Ukrainian city of Kharkiv, local authorities said. Russian attacks on the city of Kryvyi Rig wounded at least 15 people, destroyed an industrial building and disrupted power and water supplies, according to local officials. A 17-year-old boy was among those injured, the city's mayor Oleksandr Vilkul said on Telegram. 'He was wounded in the abdominal cavity. He was immediately taken to the hospital, in serious condition. Now doctors are fighting for his life,' he wrote. 'This has never happened before. A ballistic missile and 28 Shaheds simultaneously,' he added, referring to Iranian-designed drones. Russia has stepped up its summer campaign against Ukraine in recent weeks as Washington-mediated ceasefire talks stall. Its army has pushed ahead on the battlefield, while pounding Ukraine with combined drone, artillery and missile strikes. Trump said Monday he had struck a deal with NATO chief to supply more American air defence systems and weapons to Ukraine, citing his frustration with Russia's refusal to accept a ceasefire. — AFP
New Straits Times
an hour ago
- New Straits Times
Ukraine covers frontline roads with anti-drone nets
A ravaged car with its engine destroyed and doors riddled with shrapnel lay on the side of the road near Dobropillia, a sleepy town not far from the front line in eastern Ukraine. Hit by a small, remote-controlled drone, the mangled chassis was a stark reminder of why Ukraine is hurrying to mount netting over supply routes behind the sprawling front line to thwart Russian aerial attacks. As Russia's invasion grinds through its fourth year, Moscow and Kyiv are both menacing each other's armies with swarms of cheap drones, easily found on the market and rigged with deadly explosives. AFP reporters saw Ukrainian soldiers installing green nets on four-metre (13-foot) poles spanning kilometres (miles) of road in the eastern Donetsk region, where some of the war's most intense fighting has taken place. "When a drone hits the net, it short-circuits and it cannot target vehicles," said 27-year-old engineering brigade commander Denis, working under the blazing sun. "We are shifting into a so-called drone war," Denis told AFP. FPV (first-person view) drones have already seriously wounded a few of his men. Some are armed with shotguns to shoot them down. The Russian army has also been deploying nets. "We weave nets like spiders! For extremely dangerous birds without feathers," the Russian defence ministry quoted a soldier with the call sign "Ares" as saying in April. An earlier article by pro-Kremlin media outlet Izvestia also showed soldiers mounting netting close to the front. Drones are also a worry for towns and cities. Since early July, the town of Dobropillia, around 20 kilometres (12 miles) from the front line, has become a target for Russian FPV drone attacks. During a recent visit to the civilian hub – where some 28,000 people lived before the war – AFP journalists saw residents on the streets rush for cover in shops when a drone began buzzing overhead. When the high-pitched whirring had died down and the threat disappeared, one woman exiting a shelter picked up her shopping bags and glanced upwards, returning to her routine. Every day, victims come to the small town's hospital. According to the hospital's director, Vadym Babkov, the enemy FPVs "spare neither medical workers nor civilians." As the roads "are not yet 100-percent covered" by nets, his ambulances have to take long detours, reducing the patients' chances of survival, the 60-year-old said. "We are all under threat," Babkov added. In Russia's Belgorod border region, which frequently comes under Ukrainian fire, authorities have retrofitted ambulances with metal anti-drone cages – a technology once reserved for tanks and personnel carrier vehicles. "Civilians have got used to it," Denis told AFP. Olga, a waitress in a small cafe and mini-market in Dobropillia, has devised her own way to cope with the constant drone threat. "When I drive and feel that a drone is going to attack me, I open all the windows to avoid glass shards hitting me," the 45-year-old told AFP. The atmosphere in the town had become "frightening", Olga said. The shop next to Olga's was recently hit by an FPV drone, leaving its owner in a coma. "Now we jump at every gust of wind," Olga said. "The day has passed – thank God. The night has passed and we wake up with all our arms and legs intact – thank God." Despite the roads constantly coming under attack, Olga still receives products to sell in her small cafe, since suppliers take detours along routes away from the front. But she doesn't know for how long. "Everything hangs in the air now," she said. We're living day by day."
