Oil price falls as trade war concerns increase worries about fuel demand
Brent crude futures fell 52c, or 0.75%, to $68.69 (R1,209) a barrel by 3.25 GMT. US West Texas Intermediate crude was at $66.69 (R1,174) a barrel, down 51c, or 0.76%. The benchmarks settled slightly lower on Monday.
The August West Texas Intermediate contract expires on Tuesday and the more active September contract was down 54c, or 0.82%, to $65.41 (R1.151) a barrel.
'Broad demand concerns continue to simmer amid escalating global trade tensions, specially as markets eye the latest tariff threats between major economies and [US President Donald] Trump's potential announcements ahead of the August 1 deadline,' said Priyanka Sachdeva, senior market analyst at Phillip Nova.
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TimesLIVE
an hour ago
- TimesLIVE
Trump strikes tariff deal with Japan, auto stocks surge
US President Donald Trump struck a trade deal with Japan that lowers tariffs on auto imports and spares Tokyo from punishing new levies on other goods in exchange for a $550bn (R9.6-trillion) package of US-bound investment and loans. It is the most significant of a clutch of agreements Trump has bagged since unveiling sweeping global levies in April, though like other deals, exact details remained unclear. Japan's autos sector, which accounts for more than a quarter of its US exports, will see existing tariffs cut to 15% from levies totalling 27.5% before. Duties due to come into effect on other Japanese goods from August 1 will also be cut to 15%. The announcement sent Japan's benchmark Nikkei stock index climbing almost 4% to its highest in a year, led by stocks in automakers with Toyota up more than 14% and Honda nearly 11%. "I signed the largest trade deal in history with Japan," Trump said on his Truth Social platform. "This is a very exciting time for the US, and specially for the fact that we will continue to have a great relationship with Japan." Japanese Prime Minister Shigeru Ishiba, who plans to resign after a bruising election defeat on Sunday, according to a source close to the embattled premier, hailed the tariff agreement as "the lowest rate ever applied among countries that have a trade surplus with the US".

IOL News
2 hours ago
- IOL News
Building for tomorrow: addressing climate change in South Africa's construction landscape
Climate change impacts vulnerable areas like townships as poor infrastructure turns delays into costly, sometimes indefinite setbacks. Image: Independent Newspapers Archives The Human Sciences Research Council (HSRC) has warned that climate change is one of the greatest challenges of the 21st century. On Tuesday afternoon, the South African Weather Service (SAWS) issued a Yellow Level 2 Warning for Disruptive rainfall resulting in localised flooding of susceptible formal/ informal settlements or roads, low-lying areas and/or bridges, slippery roads leading to minor vehicle accidents, and difficulty driving conditions on dirt roads along the north coast of KwaZulu-Natal. In construction alone, adverse weather delays are said to delay 45% of construction projects globally, costing billions each year, according to Research Gate. In South Africa, the industry faces mounting pressure to adapt, not just through resilient materials and design, but smarter labour practices. The Building Industry Bargaining Council (BIBC) believes that collective bargaining can help to keep construction safe, viable, and economically sustainable. "Climate change is impacting our industry now," says Danie Hattingh, business spokesperson for the BIBC. In the first six months of 2024, natural disasters cost Africa US$ 0.5bn (approximately R9 billion). "From floods that damage transport infrastructure to droughts that halt water-dependent operations, the construction sector is exposed on multiple fronts," Hattingh said. Weather disruptions impact every phase of construction, from damaged ports and rail lines to delayed supply chains. In vulnerable areas like townships, poor infrastructure turns delays into costly, sometimes indefinite setbacks. For workers, these disruptions translate into safety risks and potential job insecurity. "Our Collective Agreement acknowledges the reality of these challenges," says Hattingh. "It includes provisions that allow contractors to temporarily lay off workers when weather or material delays make it impossible to continue safely. This gives both parties a framework to manage disruptions without dismantling the entire project team." Some regions and project types are said to be more exposed than others. Low-lying coastal developments are vulnerable to rising sea levels and flooding, while inland projects are often constrained by water and energy shortages. Sites in areas lacking proper drainage or stormwater management infrastructure were said to be particularly prone to disruption. Hattingh said the consequences of failing to adapt are severe. "If the industry doesn't embrace climate-resilient practices, we'll see more failed projects, higher insurance premiums, and growing reputational and regulatory risk. Clients and investors are already scrutinising construction firms through an environmental lens." The BIBC said forward-thinking design and material innovation are emerging as critical tools in the industry's climate response. It said passive design strategies (such as optimising building orientation, increasing ventilation, and incorporating shading) help to reduce dependence on energy-intensive cooling systems. "It added that in flood-prone regions, elevated structures and permeable surfaces are mitigating water damage and reducing surface runoff, while non-combustible materials and buffer zones help to mitigate fire spread in high-risk fire regions. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ According to the council, technology is also playing a role, helping construction happen quicker and in smarter ways and not just with the building itself but throughout the whole process. It said modular and prefabricated structures reduce waste and allow for rapid reconstruction after extreme events. Renewable energy technologies, including solar panels and rainwater harvesting systems, offered off-grid resilience and water security, it said. "These aren't just aesthetic upgrades, they're economic imperatives," says Hattingh. "By integrating sustainable design into their projects, it promotes economic inclusion, job creation in green technologies, and compliance with international sustainability goals such as the UN's SDGs and the Paris Agreement." BIBC said adapting to climate realities does come at a cost, but the cost of doing nothing is far higher. It said firms that continue using traditional materials and processes face escalating operational expenses, insurance liabilities, and reputational damage. Unfit buildings may become uninsurable, energy-inefficient, or even dangerous to occupants. Fortunately, sustainability and profitability were mutually exclusive. Certifications like those offered by the Green Building Council of South Africa (GBCSA) are helping firms unlock tax incentives, enhance resale values, and demonstrate leadership. "We're seeing more businesses embrace this shift, not just to reduce risk, but to remain competitive," Hattingh notes. In addition, green-certified buildings often command higher rental or resale values, particularly in the commercial sector. Historically, the industry could plan around fairly predictable seasonal weather. That is no longer the case. "We're witnessing increasingly erratic weather patterns, with devastating consequences," says Hattingh. "You can't always foresee a flood that will wipe out access to a building site or a heatwave that makes work conditions unsafe." This unpredictability directly impacts workers across all provinces. High and low temperature extremes can compromise material performance and endanger crews, making it difficult to schedule projects or maintain consistent employment. While the BIBC's collective agreement provisions offer some protection through structured layoffs and reinstatements, it said the long-term solution lies in creating more stable, resilient working conditions through planning, technology, and investment in climate-proof construction. Ultimately, the benefits of climate adaptation extend far beyond compliance; they shape the kind of society they are building. More durable structures mean safer communities. Smarter building systems reduce the environmental footprint. Inclusive green technologies create jobs, drive innovation and build resilience. "The construction industry doesn't just respond to climate change, it shapes how we live with it," says Hattingh. "We encourage industry leaders, contractors, and stakeholders to collaborate on how collective agreements can support greener, safer, and more resilient building practices. Together, we can build a future that withstands both environmental and economic pressures." The UN's latest Intergovernmental Panel on Climate Change (IPCC) report predicts more frequent extreme weather with rising financial costs, posing a serious threat to South Africa's already climate-vulnerable, semi-arid regions. Meanwhile, drought that has been intensified by global warming and compounded by human action, has taken a devastating toll on wildlife across Africa and the Amazon between 2023 and 2025. According to a sobering new United Nations report, animal populations are being ravaged not just by thirst and starvation, but by human intervention as fragile ecosystems buckle under climatic stress. The Drought Hotspots Around the World 2023–2025 report - released in July by the US National Drought Mitigation Center and the UN Convention to Combat Desertification, with backing from the International Drought Resilience Alliance - catalogues the mass deaths of wild animals as both a direct and indirect consequence of prolonged drought. From East Africa to the edges of the Amazon, the line between ecological collapse and human survival is becoming dangerously thin. El Niño's re-emergence in 2023 brought a global spike in temperatures. This climatic event, part of the broader El Niño-Southern Oscillation (ENSO) system, is strongly linked to the spike in extreme droughts recorded over the past two years. In southern and eastern Africa, already brittle ecological balances gave way. Elephants starved in their hundreds, predators strayed into human settlements, and communities responded with lethal force. 'Human-animal interactions are becoming more complex due to climate change, but we must remember that we've fundamentally altered animals' natural migrations,' says Dr Henno Havenga of the Unit for Environmental Sciences and Management at North-West University, offering a broader ecological context. 'Droughts have always occurred, but in the meantime, we've put up fences at every turn. Where elephants once migrated thousands of kilometres in search of food and water, they are now trapped in fixed reserves.' The environmental scientists said in a continent where ecological, climatic and economic stresses now collide with deadly regularity, the cost of doing nothing may prove fatal, not only to Africa's iconic wildlife, but to the human communities that have lived alongside them for generations. Independent Media Property

TimesLIVE
3 hours ago
- TimesLIVE
Trump tariffs take a $1bn bite out of GM earnings; shares fall
General Motors' second quarter earnings took a $1.1bn (R19,305,825,000) hit from tariffs, but the carmaker beat analyst expectations for the period, supported by strong sales of its core petrol trucks and SUVs. The largest US carmaker by sales said it expects the tariff impact to worsen in the third quarter and stuck to a previous estimate that trade headwinds threaten to hit the bottom line by $4bn (R70,198,998,400) to $5bn (R87,748,748,000). GM said it could take steps to mitigate at least 30% of the impact. Shares fell about 6% in early trading. The carmaker's revenue in the quarter ended June 30 fell nearly 2% to about $47bn (R824,838,231,200) from a year ago. Its quarterly adjusted earnings per share fell to $2.53 (R44.40) compared with $3.06 (R53,71) a year earlier. Analysts on average expected adjusted profit of $2.44 (R42,82) per share, according to data compiled by LSEG. GM's adjusted earnings before interest and taxes was among corporations that revised annual guidance due to the impact from US President Donald Trump's tariffs, lowering it to an annual adjusted core profit of between $10bn (R175,501,993,000) and $12.5bn (R219,377,491,250). The company on Tuesday stood by the forecast. Beyond tariffs, GM's underlying business in the quarter was solid. Sales in the US market – its main profit centre – rose 7%, while the company continued to command strong pricing on its pickup trucks and SUVs. GM swung back to a small profit in China, after losing money there a year before. Analysts said GM may need to cut investment in future projects or find other ways to trim spending to offset the effect of tariffs. Jeep-maker Stellantis on Monday warned tariffs would significantly affect results in the second half of 2025, and said tariffs cost it about €300m (R6,177,180,000) in the first half of the year. Shares of rival Ford Motor and US-traded shares of Stellantis fell about 1% on Tuesday morning. The carmaker took steps in recent months to bolster its combustion-engine operations through increased investment in its US factory base, calling into question its goal of ending the production of petrol-powered cars and trucks by 2035. GM announced in June it would invest $4bn at three US facilities in Michigan, Kansas and Tennessee, including a plan to move production of the Cadillac Escalade and increase output of its two big pickup trucks. It added production of its previously Mexico-produced Chevy Blazer to the Tennessee plant. The carmaker imports about half the vehicles it sells in the US, mainly from Mexico and South Korea. Crosstown rival Ford produces about 80% of its US-sold vehicles domestically. Car companies are increasingly shifting their focus to bolstering the core lineup of petrol trucks and SUVs as the growth rate of EV sales has slowed. Demand for battery-powered models has slowed after rapid growth earlier this decade. The trend is intensified by the pending disappearance of government support for the battery-powered models. Sweeping tax and budget legislation approved by the US Congress will eliminate $7,500 (R131,658) tax credits for buying or leasing new electric vehicles and a $4,000 (R70,217) used-EV credit at the end of September.