Oil prices dip to settle at 3-week low on US and China economic concerns
eased on Friday and settled at a three-week low as traders worried about negative economic news from the US and China and signs of growing supply.
Losses were limited by optimism US trade deals could boost global economic growth and oil demand in the future.
Brent crude futures
fell 74 cents, or 1.1 per cent, to settle at $68.44, while US West Texas Intermediate (WTI) crude fell 87 cents, or 1.3 per cent, to settle at $65.16.
Those were the lowest settlement levels for Brent since July 4 and WTI since June 30.
For the week, Brent was down about 1 per cent with WTI down about 3 per cent.
European Commission President Ursula von der Leyen will meet US President Donald Trump on Sunday in Scotland. European Union officials and diplomats said they expected to reach a framework trade deal this weekend.
The euro zone economy has remained resilient to the pervasive uncertainty caused by a global trade war, a slew of data showed on Friday, even as European Central Bank policymakers appeared to temper market bets on no more rate cuts.
In the US, new orders for US-manufactured capital goods unexpectedly fell in June while shipments of those products increased moderately, suggesting business spending on equipment slowed considerably in the second quarter.
Trump said he had a good meeting with Federal Reserve Chair Jerome Powell and got the impression that the head of the US central bank might be ready to lower interest rates.
Lower interest rates reduce consumer borrowing costs and can boost economic growth and demand for oil.
In China, the world's second-biggest economy, fiscal revenue dipped 0.3 per cent in the first six months from a year earlier, the finance ministry said, maintaining the rate of decline seen between January and May.
Growing supplies?
The US is preparing to allow partners of Venezuela's state-run PDVSA, starting with US oil major Chevron , to operate with limitations in the sanctioned nation, sources said on Thursday.
That could boost
Venezuelan oil exports
by a little more than 200,000 barrels per day (bpd), news US refiners would welcome, as it would ease tightness in the heavier crude market, ING analysts wrote.
Iran said it would continue nuclear talks with European powers after "serious, frank, and detailed" conversations on Friday, the first such face-to-face meeting since Israel and the US bombed Iran last month.
Venezuela and Iran are members of the Organization of the Petroleum Exporting Countries (OPEC). Any deal that could increase the amount of oil either sanctioned country could export would boost the amount of crude available to global markets.
OPEC said the joint ministerial monitoring committee (JMMC) scheduled to convene on Monday does not hold decision-making authority over production levels.
Four OPEC+ delegates said an OPEC+ panel is unlikely to alter existing plans to raise oil output when it meets, noting the producer group is keen to recover market share while summer demand is helping to absorb the extra barrels. OPEC+ includes OPEC and allies like Russia.
In Russia, the world's No. 2 crude producer behind the US, daily oil exports from its western ports are set to be around 1.77 million bpd in August, down from 1.93 million bpd in July's plan, Reuters calculations based on data from two sources show.
In the US, energy firms this week cut the number of oil and natural gas rigs operating for the 12th time in 13 weeks, energy services firm
Baker Hughes
said in its closely followed report on Friday.
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The Hindu
28 minutes ago
- The Hindu
U.S.-EU trade deal wards off further escalation but will raise costs for companies, consumers
President Donald Trump and European Commission President Ursula von der Leyen have announced a sweeping trade deal that imposes 15% tariffs on most European goods, warding off Mr. Trump's threat of a 30% rate if no deal had been reached by August 1. The tariffs, or import taxes, paid when Americans buy European products could raise prices for U.S. consumers and dent profits for European companies and their partners who bring goods into the country. Here are some things to know about the trade deal between the United States and the European Union: What's in the agreement? Mr. Trump and Ms. von der Leyen's announcement, made during Mr. Trump's visit to one of his golf courses in Scotland, leaves many details to be filled in. The headline figure is a 15% tariff rate on 'the vast majority' of European goods brought into the US, including cars, computer chips and pharmaceuticals. It's lower than the 20% Mr. Trump initially proposed, and lower than his threats of 50% and then 30%. Ms. von der Leyen said the two sides agreed on zero tariffs on a range of 'strategic' goods: Aircraft and aircraft parts, certain chemicals, semiconductor equipment, certain agricultural products, and some natural resources and critical raw materials. Specifics were lacking. She said the two sides 'would keep working' to add more products to the list. Additionally, the EU side would purchase what Mr. Trump said was $750 billion worth of natural gas, oil and nuclear fuel to replace Russian energy supplies, and Europeans would invest an additional $600 billion in the U.S.. What's not in the deal? Mr. Trump said the 50% U.S. tariff on imported steel would remain; Ms. von der Leyen said the two sides agreed to further negotiations to fight a global steel glut, reduce tariffs and establish import quotas — that is, set amounts that can be imported, often at a lower rate. Mr. Trump said pharmaceuticals were not included in the deal. Ms. von der Leyen said the pharmaceuticals issue was 'on a separate sheet of paper' from Sunday's (July 27, 2025) deal. Where the $600 billion for additional investment would come from was not specified. And Ms. von der Leyen said that when it came to farm products, the EU side made clear that 'there were tariffs that could not be lowered,' without specifying which products. What's the impact? The 15% rate removes Mr. Trump's threat of a 30% tariff. It's still much higher than the average tariff before Mr. Trump came into office of around 1%, and higher than Mr. Trump's minimum 10% baseline tariff. Higher tariffs, or import taxes, on European goods mean sellers in the U.S. would have to either increase prices for consumers — risking loss of market share — or swallow the added cost in terms of lower profits. The higher tariffs are expected to hurt export earnings for European firms and slow the economy. The 10% baseline applied while the deal was negotiated was already sufficiently high to make the European Union's executive commission cut its growth forecast for this year from 1.3% to 0.9%. Ms. Von der Leyen said the 15% rate was 'the best we could do' and credited the deal with maintaining access to the US market and providing 'stability and predictability for companies on both sides.' What is some of the reaction to the deal? German Chancellor Friedrich Merz welcomed the deal, which avoided 'an unnecessary escalation in transatlantic trade relations" and said that 'we were able to preserve our core interests,' while adding that 'I would have very much wished for further relief in transatlantic trade.' The Federation of German Industries was blunter. "Even a 15% tariff rate will have immense negative effects on export-oriented German industry," said Wolfgang Niedermark, a member of the federation's leadership. While the rate is lower than threatened, "the big caveat to today's deal is that there is nothing on paper, yet," said Carsten Brzeski, global chief of macro at ING bank. 'With this disclaimer in mind and at face value, today's agreement would clearly bring an end to the uncertainty of recent months. An escalation of the US-EU trade tensions would have been a severe risk for the global economy," Mr. Brzeski said. 'This risk seems to have been avoided.' What about car companies? Asked if European carmakers could still sell cars at 15%, Ms. von der Leyen said the rate was much lower than the current 27.5%. That has been the rate under Mr. Trump's 25% tariff on cars from all countries, plus the preexisting U.S. car tariff of 2.5%. The impact is likely to be substantial on some companies, given that automaker Volkswagen said it suffered a $1.5 billion hit to profit in the first half of the year from the higher tariffs. Mercedes-Benz dealers in the US have said they are holding the line on 2025 model year prices 'until further notice.' The German automaker has a partial tariff shield because it makes 35% of the Mercedes-Benz vehicles sold in the U.S. in Tuscaloosa, Alabama, but the company said it expects prices to undergo 'significant increases' in coming years. What were the issues dividing the two sides? Before Mr. Trump returned to office, the U.S. and the EU maintained generally low tariff levels in what is the largest bilateral trading relationship in the world, with some USD 2 trillion in annual trade. Together, the U.S. and the EU have 44% of the global economy. The U.S. rate averaged 1.47% for European goods, while the EU's averaged 1.35% for American products, according to the Bruegel think tank in Brussels. Mr. Trump has complained about the EU's 198 billion-euro trade surplus in goods, which shows Americans buy more from European businesses than the other way around, and has said the European market is not open enough for U.S.-made cars. However, American companies fill some of the trade gap by outselling the EU when it comes to services such as cloud computing, travel bookings, and legal and financial services. And some 30% of European imports are from American-owned companies, according to the European Central Bank.
Mint
28 minutes ago
- Mint
Indian stock market: 7 key things that changed over weekend - Gift Nifty, US-European Union trade deal to gold prices
Indian stock market: The domestic equity market benchmark indices, Sensex and Nifty 50, are expected to open on muted note on Monday, following mixed cues from global markets. Asian markets traded mixed, while the US stock market ended higher last week, with the US stock futures rising after President Donald Trump signed a framework trade agreement with the European Union. This week, investors will focus on key stock market triggers, including on developments in the US-India trade deal, US Federal Reserve meeting, auto sales data, IPO activity, Q1 results, trends in crude oil prices and other key domestic and global economic data. On Friday, the Indian stock market ended sharply lower, extending losses for the second consecutive session. The Sensex crashed 721.08 points, or 0.88%, to close at 81,463.09, while the Nifty 50 settled 225.10 points, or 0.90%, lower at 24,837.00. 'We expect the market to remain in consolidation mode amid continued uncertainty around India-US trade deal, a mixed Q1FY26 earnings season so far and intensifying FII outflows,' said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd. Here are key global market cues for Sensex today: Asian markets traded mixed on Monday as investors await more details of the US-China trade talks. Japan's Nikkei 225 fell 0.52% while the Topix index declined 0.44%. South Korea's Kospi index dropped 0.11% while the Kosdaq was flat. Hong Kong's Hang Seng Index futures indicated a stronger opening. Gift Nifty was trading around 24,86 level, a discount of nearly 14 points from the Nifty futures' previous close, indicating a muted start for the Indian stock market indices. US stock market ended higher on Friday amid optimism over the US-European Union trade deal, with the S&P 500 and Nasdaq notching record high closes. The Dow Jones Industrial Average gained 0.47% to 44,901.92, while the S&P 500 rose 0.40% to end at 6,388.64. The Nasdaq closed 0.24% higher at 21,108.32. For the week, the S&P 500 rallied 1.5%, the Nasdaq gained 1% and the Dow surged 1.3%. Tesla share price rallied 3.52%, Deckers Outdoor shares jumped 11%, while Intel stock price tanked 8.5%. Charter Communications shares slumped 18% and Paramount Global stock dropped 1.6%. Centene shares rose 6.1%. The US struck a framework trade agreement with the European Union, imposing a 15% import tariff on most EU goods. US President Donald Trump and European Commission President Ursula von der Leyen announced the deal, which will be effective from August 1. The US dollar eased, while the euro gained following the US-European Union trade deal. The dollar index, which tracks the greenback against major peers, fell 0.1% to 97.534. The dollar was little changed at 147.68 yen. The euro stood at $1.1763, up 0.2%, while Sterling traded at $1.34385, down almost 0.1%. Gold prices fell to their lowest in nearly two weeks, as a framework trade agreement between the United States and European Union reduced appetite for safe-haven assets, Reuters reported. Spot gold price fell 0.1% to $3,332.39 per ounce, after touching its lowest level since July 17, while US gold futures eased 0.1% to $3,332.50. Crude oil prices rose after the US reached a trade deal with the European Union and may extend a tariff pause with China. Brent crude futures gained 0.34% to $68.67 a barrel, while US West Texas Intermediate crude was at $65.37 a barrel, up 0.32%. (With inputs from Reuters) Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
28 minutes ago
- Mint
EU reaches tariff deal with US to avert painful trade blow
The US and European Union agreed on a hard-fought deal that will see the bloc face 15% tariffs on most of its exports, including automobiles, staving off a trade war that could have delivered a hammer blow to the global economy. The pact was concluded less than a week before a Friday deadline for President Donald Trump's higher tariffs to take effect and was quickly praised by several European leaders, including German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni, who called it 'sustainable.' Trump and European Commission President Ursula von der Leyen announced the deal Sunday at his golf club in Turnberry, Scotland, although they didn't disclose the full details of the pact or release any written materials. The 15% rates will take effect Aug. 1, according to a US official. 'It's the biggest of all the deals,' Trump said, while von der Leyen added it would bring 'stability' and 'predictability.' US equity futures climbed, with S&P 500 contracts rising 0.4% after the index notched its fifth-straight all-time high on Friday. The deal would leave EU exports facing much higher tariffs than the bloc would charge for imports from the US, with von der Leyen saying the aim is to rebalance a trade surplus with the US. But those kinds of tradeoffs in the agreement angered some European industry groups, with Germany's main lobby saying it 'sends a fatal signal to the closely intertwined economies on both sides of the Atlantic.' Von der Leyen and Trump also differed on some of the key terms of the deal they announced. The US president said the tariff level would apply to 'automobiles and everything else,' but not pharmaceuticals and metals. The chief of the EU's executive arm said later at a news conference that the 15% rate would be all inclusive, wouldn't stack on top of industry-specific tariffs and would cover drugs, chips and cars. Metals duties 'will be cut and a quota system will be put in place,' she said. 'We have 15% for pharmaceuticals. Whatever the decision later on is, of the president of the US, how to deal with pharmaceuticals in general globally, that's on a different sheet of paper,' von der Leyen said, adding that the overall rate 'is not to be underestimated but it was the best we could get.' Senior US officials later said that the two sides agreed on a 15% tariff level for the EU's pharmaceutical exports. A separate Section 232 probe on pharmaceuticals is still coming over the next three weeks, but the EU tariff level will remain at 15%, the officials added. The EU agreed to purchase $750 billion in American energy products, invest $600 billion in the US on top of existing expenditures, open up countries' markets to trade with the US at zero tariffs and purchase 'vast amounts' of military equipment, Trump said. Von der Leyen said no decisions have been made on European wine and spirits, but the matter would be sorted out soon. Key to getting the 15% rate to apply to pharmaceuticals and semiconductors was the bloc's promise to make US investments, according to people familiar with the matter. Ahead of the meeting, the EU was expecting a 15% charge on its imports to also apply to most pharmaceuticals. The products had been one of the negotiation's main sticking points. Without a deal, Bloomberg Economics estimated that the total US average effective tariff rate would rise to nearly 18% on Aug. 1 from 13.5% under current policies. The new deal brings that number down to 16%. The deal doesn't cover the EU's steel and aluminum exports, which will remain subject to 50% tariffs, according to senior US officials. Aerospace tariffs, meanwhile, will remain at 0% pending the outcome of a Section 232 probe, the officials added. Officials had discussed terms for a quota system for steel and aluminum imports, which would face a lower import tax below a certain threshold and would be charged the regular 50% rate above it. The EU had also been seeking quotas and a cap on future industry-specific tariffs. For months, Trump has threatened most of the world with high tariffs with the goal of shrinking US trade deficits. But the prospect of those duties — and Trump's unpredictable nature — put world capitals on edge. In May, he threatened to impose a 50% duty on nearly all EU goods, adding pressure that accelerated negotiations, before lowering that to 30%. The transatlantic pact removes a major risk for markets and the global economy — a trade war involving $1.7 trillion worth of cross-border commerce — even though it means European shipments to the US are getting hit with a higher tax at the border. The goals, Trump said, were more production in the US and wider access for American exporters to the European market. Von der Leyen acknowledged part of the drive behind the talks was a reordering of trade, but cast it as beneficial for both sides. 'The starting point was an imbalance,' von der Leyen said. 'We wanted to rebalance the trade we made, and we wanted to do it in a way that trade goes on between the two of us across the Atlantic, because the two biggest economies should have a good trade flow.' The announcement capped off months of often tense shuttle diplomacy between Brussels and Washington. The two sides appeared close to a deal earlier this month when Trump made his 30% threat. The EU had prepared to put levies on about €100 billion ($117 billion) — about a third of American exports to the bloc — if a deal wasn't reached and Trump followed through on his warning. US and European negotiators had been zeroing in on an agreement this past week, and the decision for von der Leyen to meet Trump at his signature golf property brought the standoff to a dramatic conclusion. The EU for weeks indicated a willingness to accept an unbalanced pact involving a reduced rate of around 15%, while seeking relief from levies on industries critical to the European economy. The US president has also imposed 25% duties on cars and double that rate on steel and aluminum, as well as copper. Several exporters in Asia, including Indonesia, the Philippines and Japan, have negotiated reciprocal rates between 15% to 20%, and the EU saw Japan's deal for 15% on autos as a breakthrough worth seeking as well. Washington's talks also continue with Switzerland, South Korea and Taiwan. Trump said he is 'looking at deals with three or four other countries' but 'for the most part' others with smaller economies or less significant trading relationships with the US would receive letters simply setting tariff rates. Earlier: Trump Says Countries Will Face Tariffs Ranging From 15% to 50% Trump announced a range of tariffs on almost all US trading partners in April, declaring his intent to revive domestic manufacturing, help pay for a massive tax cut and address economic imbalances he has said are detrimental to US workers. He put them on pause a week later when investors panicked. Trump's decades-old complaints about the global trading system heap particularly sharp scorn on the EU, which he has accused of being formed to 'screw' the US. The bloc was established in the years following World War II in order to establish economic stability on the continent. The president has lashed out at non-tariff barriers for American companies to do business across the 27-nation bloc. Those include the EU's value-added tax, levies on digital services, and safety and environmental regulations. Weeks of negotiations tested the EU's willingness to digest what is seen as an asymmetrical outcome, a senior EU diplomat said, but one that offers an opportunity to continue the talks without escalating further. --With assistance from Michael G. Wilson, Skylar Woodhouse, Katharina Rosskopf, Kasia Klimasinska, Sam Kim, Jorge Valero, Jenny Leonard, Tommaso Ebhardt, Arne Delfs, Se Young Lee and Richard Bravo.
