Oil prices dip to settle at 3-week low on US and China economic concerns
For the week, Brent was down about 1% with WTI down about 3%. New orders for U.S.-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. Meanwhile, the U.S. is preparing to allow partners of Venezuela's state-run PDVSA starting with U.S. 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 U.S. refiners would welcome, as it would ease tightness in the heavier crude market. U.S. energy firms last 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 China, the world's second-biggest economy, fiscal revenue dipped 0.3% in the first six months from a year earlier, the finance ministry said, maintaining the rate of decline seen between January and May.
Asian spot prices slip to 10-week Low on Tepid Demand, Rising Supply
Asian spot liquefied natural gas (LNG) prices slipped for a second consecutive week to a ten-week low, weighed down by tepid demand and increasing supply from new projects. The average LNG price for September delivery into north-east Asia was at $11.90 per million British thermal units (mmBtu), industry sources estimated. This is down from $12.30 per mmBtu last week and its lowest since May 16.
Despite the heatwave, spot demand in Northeast Asia has remained limited, as much of the additional cooling demand is being met by cheaper coal-fired power generation. Also, increased renewables generation has pushed some coal-fired generation out of the baseload mix, allowing more available dispatchable capacity to meet peak demand. The prospect of supply growth in the coming months also weighed on prices, particularly with expectations that Canadian supply will increase following the commencement of production at the LNG Canada project. Meanwhile, Venture Global's Plaquemines export facility, which has begun production from its second phase, has reached record output, while the Greater Tortue Ahmeyim project offshore Mauritania and Senegal has been operating smoothly since loading its first cargo.
In Europe, The futures price at the Dutch TTF hub dropped to $11.19 per mmBtu. A fall in spot Asian LNG demand over the past weeks has allowed European buyers to bid at wider discounts to the TTF to secure cargoes.
— By The Al-Attiyah Foundation
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Qatar Tribune
3 days ago
- Qatar Tribune
US chip maker Intel says revenue rose as it cut ranks
Agencies Intel this week posted quarterly revenue that topped market expectations, saying it has cut about 15 percent of its workforce to be 'more agile.' The U.S. chip maker also said it 'will no longer move forward' with projects in Germany and Poland as part of a push to save billions of dollars. The struggling chip maker's earnings report came as rivals specializing in graphics processing units (GPUs) for artificial intelligence thrive due to rapid adoption of the is one of Silicon Valley's most iconic companies, but its fortunes have been dwarfed by Asian powerhouses TSMC and Samsung, which dominate the made-to-order semiconductor business. The company was also caught by surprise with the emergence of Nvidia as the world's preeminent AI chip niche has been in chips used in traditional computing processes, steadily being eclipsed by the AI reported $12.9 billion in sales in the recently ended quarter, topping forecasts, but logged a $2.9 billion loss that included $1.9 billion in restructuring charges. 'Intel has completed the majority of the planned headcount actions it announced last quarter to reduce its core workforce by approximately 15 percent,' the company said in an earnings release. 'These changes are designed to create a faster-moving, flatter and more agile organization.' Intel shares were down slightly in after-hours trades that followed the release of the earnings chief executive Lip-Bu Tan took the helm in March, announcing layoffs as White House tariffs and export restrictions muddied the market. Malaysia-born tech industry veteran Tan has said it 'won't be easy' to overcome challenges faced by the South Korean chip giant SK hynix reported record quarterly profits Thursday thanks to soaring demand for artificial intelligence technology.
Qatar Tribune
3 days ago
- Qatar Tribune
Oil prices dip to settle at 3-week low on US and China economic concerns
Oil prices eased on Friday and settled at a three-week low as traders worried about negative economic news from the U.S. and China and signs of growing supply. Losses were limited by optimism U.S. trade deals could boost global economic growth and oil demand in the future. Brent crude futures fell 74 cents, or 1.1%, to settle at $68.44, while U.S. West Texas Intermediate (WTI) crude fell 87 cents, or 1.3%, to settle at $65.16. For the week, Brent was down about 1% with WTI down about 3%. New orders for U.S.-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. Meanwhile, the U.S. is preparing to allow partners of Venezuela's state-run PDVSA starting with U.S. 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 U.S. refiners would welcome, as it would ease tightness in the heavier crude market. U.S. energy firms last 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 China, the world's second-biggest economy, fiscal revenue dipped 0.3% in the first six months from a year earlier, the finance ministry said, maintaining the rate of decline seen between January and May. Asian spot prices slip to 10-week Low on Tepid Demand, Rising Supply Asian spot liquefied natural gas (LNG) prices slipped for a second consecutive week to a ten-week low, weighed down by tepid demand and increasing supply from new projects. The average LNG price for September delivery into north-east Asia was at $11.90 per million British thermal units (mmBtu), industry sources estimated. This is down from $12.30 per mmBtu last week and its lowest since May 16. Despite the heatwave, spot demand in Northeast Asia has remained limited, as much of the additional cooling demand is being met by cheaper coal-fired power generation. Also, increased renewables generation has pushed some coal-fired generation out of the baseload mix, allowing more available dispatchable capacity to meet peak demand. The prospect of supply growth in the coming months also weighed on prices, particularly with expectations that Canadian supply will increase following the commencement of production at the LNG Canada project. Meanwhile, Venture Global's Plaquemines export facility, which has begun production from its second phase, has reached record output, while the Greater Tortue Ahmeyim project offshore Mauritania and Senegal has been operating smoothly since loading its first cargo. In Europe, The futures price at the Dutch TTF hub dropped to $11.19 per mmBtu. A fall in spot Asian LNG demand over the past weeks has allowed European buyers to bid at wider discounts to the TTF to secure cargoes. — By The Al-Attiyah Foundation
Qatar Tribune
5 days ago
- Qatar Tribune
Oil prices gain on US trade optimism, crude inventories
Agencies HOUSTON Oil prices rose on Thursday, lifted by expected cuts in Russian gasoline supply and optimism over US trade negotiations that would ease pressure on the global economy, with a further boost from a sharper-than-expected decline in US crude inventories. Brent crude futures had gained 80 cents, or 1.17 percent, to $69.31 a barrel by 10:52 am CDT (1552 GMT). US West Texas Intermediate crude futures climbed 97 cents, or 1.49 percent to $66.22per barrel. 'Russia looking to cut off gasoline exports gave the market a boost,' said Phil Flynn, senior analyst with Price Futures Group. 'The market was looking for a reason to gohigher.' Three industry sources told Reuters that Russia was considering a tighter export ban as early as Monday that would include fuel producers. The restrictions will exclude supplies to the Moscow-led Eurasian Economic Union, a group of five former Soviet states, and to countries such as Mongolia with which Russia has intergovernmental agreements on fuel supplies, the sources said. Early in the session, futures rose on the previous day's report of a US crude inventory draw and on hopes for a trade deal between the US and the European Union that would lower tariffs. 'The US crude inventory draw and the trade efforts are adding some support to prices,' said Janiv Shah, an analyst at Rystad. On Wednesday, two European diplomats said the EU and the US were moving toward a trade deal that could include a 15 percent US baseline tariff on EU imports and possible exemptions. This could pave the way for another major trade agreement following the Japan deal. Also on Wednesday, US Energy Information Administration data showed crude inventories fell last week by 3.2 million barrels to 419 million barrels, far exceeding analysts' expectations in a Reuters poll for a 1.6 million-barrel draw. Oil prices were also supported by a suspension of Azeri crude exports from the Turkish port of Ceyhan and a brief halt to loadings at Russia's main Black Sea ports which has since been resolved. BP said organic chlorides were detected in some of the oil tanks in the terminal at Ceyhan, adding that oil loading continued from some of the tanks with chloride levels assessed to be within normal specifications, while export activities via the BTC pipeline also continued. Traders will watch for further news on loadings from Ceyhan and Novorossiysk, which together make up around 2.5 percent of global oil supply at 2.5 million barrels per day, according to Reuters calculations based on loading data from the region. Analysts expect limits to further oil price gains. 'Uncertainty over US-China trade talks and peace negotiations between Ukraine and Russia is limiting further gains,' said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities, predicting WTI would likely remain range-bound between $60 and $70 a barrel.
