Oil prices steady on easing Middle East risks
LONDON: Oil prices held steady on Monday as Middle East risks eased while a possible OPEC+ output increase in August and uncertainty over the global demand outlook weighed on the market.
Brent crude futures edged down by 22 cents, or 0.3%, to $67.55 a barrel at 1119 GMT, ahead of the August contract's expiry later on Monday. The more active September contract was down 14 cents at $66.61.
U.S. West Texas Intermediate crude was down 32 cents, or 0.5%, at $65.20 a barrel.
The Brent and WTI benchmarks posted their biggest weekly declines since March 2023 last week but are set for a second consecutive monthly gain of more than 5%.
A 12-day war that started with Israel targeting Iran's nuclear facilities on June 13 sent prices above $80 a barrel before sliding back to $67.
The market is back to a range-trading environment that is likely to continue until new economic growth concerns emerge or supply disruptions materialise, said UBS analyst Giovanni Staunovo.
Four OPEC+ sources told Reuters last week that the group was set to boost production by 411,000 barrels per day (bpd) in August after similar increases for May, June and July.
Oil steadies after report of planned OPEC+ Aug output hike
If OPEC opted for another output increase in August, global and OECD oil inventories would start swelling, potentially preventing any further upside in prices, PVM Associates analyst Tamas Varga said in a note.
The oil producer group is set to meet on July 6.
However, some market tightness remains despite rising output, with lower than expected production increases while exports from OPEC+ countries have remained stable, Staunovo added.
A Reuters survey found that OPEC oil output rose in May but gains were limited by cuts by countries that had previously exceeded their quotas while Saudi Arabia and the United Arab Emirates made smaller increases than allowed.
Bearish pressure is likely to persist on concerns over slower global oil demand, particularly from leading crude importer China, some analysts say.
Uncertainty around global growth continues to cap prices, said Priyanka Sachdeva, senior market analyst at Phillip Nova.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 hours ago
- Business Recorder
Oil prices slip on easing Middle East risks
HOUSTON: Oil prices slipped on Monday as investors weighed easing Middle East risk alongside a possible OPEC+ output increase in August and uncertainty over the global demand outlook. Brent crude futures edged down by 19 cents, or 0.3%, to $67.58 a barrel at 10:01 a.m. EDT (1501 GMT), ahead of the August contract's expiry later on Monday. The more active September contract was down 34 cents at $66.46. U.S. West Texas Intermediate crude was down 62 cents, or 1%, at $64.90 a barrel. The Brent and WTI benchmarks posted their biggest weekly declines since March 2023 last week but are set for a second consecutive monthly gain of 5.8% and 6.8% respectively. A 12-day war that started with Israel targeting Iran's nuclear facilities on June 13 sent prices above $80 a barrel before sliding back to $67. 'Supply increases and a bearish demand outlook by data reporting agencies will likely start to drive oil markets onceagain after tensions appear to have cooled between Iran and Israel,' StoneX analyst Alex Hodes said in a note on Monday. Four OPEC+ sources told Reuters last week that the group was set to boost production by 411,000 barrels per day (bpd) in August after similar increases for May, June and July. Oil steadies after report of planned OPEC+ Aug output hike 'I believe this potential supply pressure remains under-priced, leaving crude vulnerable to further weakness,' said Ole Hansen, head of commodity strategy at Saxo Bank. ' soon we will enter the demand shoulder season where OPEC+ increases will become much more visible, and harder to ignore.' The oil producer group is set to meet again on July 6. Some market tightness remains despite rising output, however, with lower than expected production increases while exports from OPEC+ countries have remained stable, said Giovanni Staunovo, analyst at UBS. A Reuters survey found that OPEC oil output rose in May, but gains were limited by cuts by countries that had previously exceeded their quotas. Saudi Arabia and the United Arab Emirates, meanwhile, made smaller increases than allowed. Kazakhstan, which has persistently exceeded quotas set by OPEC+, may exceed its previous oil production forecast by around 2% this year following an upgrade to output at its largest Caspian oilfields, Reuters calculations, based on data from state-owned energy company KazMunayGaz, showed. A survey of 40 economists and analysts in June forecast Brent crude will average $67.86 per barrel in 2025, up from May's $66.98 forecast, while U.S. crude is seen at $64.51, above last month's $63.35 estimate.
Business Recorder
3 hours ago
- Business Recorder
Wheat, corn down 3-4 cents, soybeans up 2-4
CHICAGO: The following are U.S. expectations for the resumption of grain and soy complex trading at the Chicago Board of Trade at 8:30 a.m. CDT (1330 GMT) on Monday. NOTE: The U.S. Department of Agriculture's quarterly acreage and grains stocks reports will be released at 11 a.m. CT. Wheat - Down 3 to 4 cents per bushel CBOT wheat tipped lower on favorable supply prospects and ongoing harvests in the United States and key exporting countries. The International Grains Council raised its 2025-26 world wheat crop forecast by 2 million metric tons to 808 million on Thursday. The European Commission increased its forecast for the EU's soft wheat crop. Germany's farming association on Monday also forecast a larger grains crop for the country despite a spring drought. CBOT September soft red winter wheat was last down 3-1/4 cents to $5.37-1/2 per bushel. K.C. September hard red winter wheat was last down 2-1/2 cents to $5.31-1/4 per bushel, and Minneapolis September spring wheat was last down 3/4 cent to $6.23-1/4 per bushel. Corn eases on supply hopes, soybeans rise ahead of US reports Corn - Down 3 to 4 cents per bushel CBOT corn fell on expectations of ample global supplies. Warm weather and favorable rains have created ideal growing conditions for soybeans and corn in the U.S. Midwest, while farmers in Brazil are expected to harvest a bumper second corn crop. CBOT December corn was down 3-1/4 cents at $4.08-1/4 per bushel. Soybeans - Up 2 to 4 cents per bushel CBOT soybeans edged higher on strengthening soyoil prices as well as positioning ahead of the U.S. Department of Agriculture acreage, stock and crop progress reports due later on Monday. The dollar remained on the back foot, hovering near its lowest level in 3-1/2 years. A lower dollar makes U.S. goods more competitive in the global market. Ideal growing weather in the U.S. Midwest continues to add pressure to soy futures. U.S. exporters sold 204,000 metric tons of soybean meal to unknown destinations for 2025/26 delivery. CBOT November soybeans were last up 6 cents to $10.30-3/4 per bushel.
Business Recorder
4 hours ago
- Business Recorder
Russian rouble flat vs US dollar as central bank flags more rate cuts
MOSCOW: The Russian rouble traded flat against the U.S. dollar and the Chinese yuan on Monday as a senior central bank official flagged more key interest rate cuts at a meeting on July 25. By 1140 GMT, the rouble traded at 78.50 per U.S. dollar, according to LSEG data based on over-the-counter quotes. The Russian currency is up by about 45% against the dollar since the start of the year. The central bank's Deputy Governor Alexei Zabotkin said on Monday that the board may consider an interest rate cut of more than 1 percentage point at its meeting on July 25 if data confirms that inflation is on track to slow to 4% in 2026. The stronger rouble has helped the central bank bring the inflation rate down in recent weeks by making imported goods cheaper, but most analysts now say that the rouble is overvalued. Rouble flat versus dollar Zabotkin told reporters that the rouble's exchange rate will remain on a trajectory consistent with inflation returning to the central bank's target of 4% in 2026, down from the current level of just under 10%. Further rate cuts by the central bank are expected to weaken the rouble. Against the Chinese yuan, the most traded foreign currency in Russia, the rouble was also flat on Monday at 10.92 per yuan on the Moscow Stock Exchange.
