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Business Recorder
02-07-2025
- Business
- Business Recorder
Oil prices gain as Iran suspends cooperation with UN nuclear watchdog
NEW YORK: Oil futures edged up on Wednesday as Iran suspended cooperation with the U.N. nuclear watchdog but a surprise build in U.S. crude supplies limited gains. Brent crude was up 39 cents, or 0.6%, to $67.50 a barrel at 10:44 a.m. EDT, while U.S. West Texas Intermediate crude rose 31 cents, or 0.5%, to $65.76 a barrel. Brent has traded between a high of $69.05 a barrel and low of $66.34 since June 25, as concerns of supply disruptions in the Middle East have ebbed following a ceasefire between Iran and Israel. Iran enacted a law on Wednesday that stipulates any future inspection of its nuclear sites by the International Atomic Energy Agency needs approval by Tehran's Supreme National Security Council. The country has accused the agency of siding with Western countries and providing a justification for Israel's air strikes. 'The market is pricing in some geopolitical risk premium from Iran's move on the IAEA,' said Giovanni Staunovo, a commodity analyst at UBS. 'But this is about sentiment, there are no disruptions to oil.' Limiting gains on Wednesday, U.S. crude inventories rose by 3.8 million barrels to 419 million barrels last week, the Energy Information Administration said, compared with analysts' expectations in a Reuters poll for a 1.8 million-barrel draw. Gasoline demand dropped to 8.6 million barrels per day, prompting concerns about consumption in the peak summer driving season. Oil rises on signs of strong demand, investors await OPEC+ output decision 'During summer time, 9 million (bpd) is basically the line in the sand to define a healthy market,' said Bob Yawger, director of energy futures at Mizuho. 'We're now well below that. That's not a good sign.' Meanwhile, planned supply increases by the Organization of the Petroleum Exporting Countries and its allies including Russia, a group known as OPEC+, appear already priced in by investors and are unlikely to catch markets off-guard again imminently, said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova. Four OPEC+ sources told Reuters last week the group plans to raise output by 411,000 bpd next month when it meets on July 6, a similar amount to the hikes agreed for May, June and July. Saudi Arabia lifted shipments in June by 450,000 bpd from May, according to data from Kpler, its biggest increase in more than a year. However, overall OPEC+ exports are relatively flat to slightly down since March, Staunovo said. He expects this trend to persist over the summer as hot weather drives higher energy demand. The release of the key U.S. monthly employment report on Thursday will shape expectations around the depth and timing of interest rate cuts by the Federal Reserve in the second half of this year, said Tony Sycamore, an analyst at IG. Lower interest rates could spur economic activity, which would in turn boost oil demand.
Time of India
29-05-2025
- Business
- Time of India
Oil prices rise after OPEC+ keeps output policy unchanged
Oil prices gained more than $1 on Wednesday as OPEC+ agreed to leave their output policy unchanged and as production shut-ins from Canada raised supply concerns, while investors anticipated members of OPEC+ would agree to a production increase later this week. Brent crude futures rose $1.15, or 1.79%, to $65.24 a barrel by 12:07 pm EDT (1607 GMT), while US West Texas Intermediate crude gained $1.27, or 2.09%, to stand at $62.16 a barrel. The Organization of the Petroleum Exporting Countries and allies, together known as OPEC+, agreed on Wednesday to establish a mechanism for setting baselines for its 2027 oil production. The meeting did not make any changes to the group's output policy. Most of the oil producing countries at the Wednesday meeting do not have the spare capacity to take barrels on and off the market, said Bob Yawger, director of energy futures at Mizuho. "They were hoping to slow the pace of production increases and stop the slide in price. But that's not the way it panned out," he added. A separate meeting on Saturday of eight OPEC+ countries is expected to decide on an increase in oil output for July. Goldman Sachs analysts see the group of eight keeping production steady after the July hike on new projects entering the market later this year, slowing economic growth and a build-up of oil stocks. "However, we see the risks to our OPEC8+ supply path as skewed to the upside, especially if compliance doesn't improve or if hard demand data surprise further to the upside," they added.
Business Times
28-05-2025
- Business
- Business Times
Oil gains on supply concerns, investors await July Opec+ output decision
[NEW YORK] Oil prices gained more than 1 per cent on Wednesday on supply concerns as Opec+ agreed to leave their output policy unchanged and as the US barred Chevron from exporting Venezuelan crude. Investors previously anticipated members of Opec+ would agree to a production increase later this week. Brent crude futures settled up 81 cents, or 1.26 per cent, to US$64.90 a barrel. US West Texas Intermediate crude gained 95 cents, or 1.56 per cent, to stand at US$61.84 a barrel. Opec+, the Organization of the Petroleum Exporting Countries and allies, did not change output policy. It agreed to establish a mechanism for setting baselines for its 2027 oil production. Most oil-producing countries at the meeting do not have flexibility to adjust their output, said Bob Yawger, director of energy futures at Mizuho. 'They were hoping to slow the pace of production increases and stop the slide in price. But that's not the way it panned out,' he added. A separate meeting on Saturday of eight Opec+ countries is expected to decide on an increase in oil output for July. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Goldman Sachs analysts saw the group of eight keeping production steady after the July hike. 'However, we see the risks to our Opec8+ supply path as skewed to the upside, especially if compliance doesn't improve or if hard demand data surprise further to the upside,' they added. Coming demand for the summer driving season is significant, and with non-Opec+ crude output flat in the first half of the year, coupled with risks of Canadian wildfires hurting supply, the call on crude is stronger from Opec+, said Janiv Shah, vice-president of oil commodity markets analysis at Rystad Energy. On Wednesday, Chevron terminated the oil production, service and procurement contracts it had to operate in Venezuela, but it plans to retain its direct staff in the country, sources said. Both benchmarks ticked up in the previous session on concerns of tighter supply after the US barred Chevron from exporting crude from Venezuela under a new authorisation on its assets there. Analysts also said prices could respond positively if there was progress on global trade talks or resolving US-Iranian friction. Iran's nuclear chief Mohammad Eslami said on Wednesday it might allow the UN nuclear watchdog to send US inspectors to visit nuclear sites if Tehran's talks with Washington succeed. US crude stocks fell by 4.24 million barrels last week, market sources said, citing American Petroleum Institute figures on Wednesday. Market participants now await government data on crude inventories due on Thursday. REUTERS
Business Times
14-05-2025
- Business
- Business Times
Oil falls after US crude inventories rise
[NEW YORK] Oil prices eased on Wednesday after government data showed US crude oil stockpiles rose unexpectedly last week, prompting investor concerns of excess supplies. Brent crude futures settled 54 cents, or around 0.81 per cent, lower to US$66.09 a barrel. US West Texas Intermediate crude slipped 52 cents, or 0.82 per cent, to US$63.15. Both benchmarks traded close to their highest in two weeks in the previous session, lifted by a temporary cut in US-China tariffs. The benchmarks fell after data from the Energy Information Administration showed crude stockpiles rose by 3.5 million barrels to 441.8 million barrels last week. Analysts in a Reuters poll had expected a 1.1 million-barrel draw. Net US crude imports rose last week by 422,000 barrels per day, the EIA said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up API industry data also showed a large build of 4.3 million barrels in crude stocks last week, market sources said on Tuesday. 'Definitely, the crude build in the API numbers was not of help,' UBS analyst Giovanni Staunovo said of Wednesday's oil price fall. The Organization of the Petroleum Exporting Countries and allied producers, known as Opec+, has been increasing supply to the market. On Wednesday, however, Opec trimmed its forecast for growth in oil supply from the United States and other producers outside the wider Opec+ group this year. 'They are not changing their demand profile but adding more barrels,' said Bob Yawger, director of energy futures at Mizuho. 'At some point, supply is just going to swamp out demand and drill the market lower.' A rebound in the US dollar also weighed on prices on Wednesday. A stronger greenback makes dollar-denominated oil more expensive for investors holding other currencies, hurting demand. REUTERS
Business Recorder
14-05-2025
- Business
- Business Recorder
Oil falls after US crude inventories rise
NEW YORK: Oil prices edged lower on Wednesday after government data showed U.S. crude oil stockpiles rose unexpectedly last week, prompting investor concerns of excess supplies. Brent crude futures fell 40 cents, or around 0.6%, to $66.23 a barrel by 12:04 p.m. EDT (1604 GMT). U.S. West Texas Intermediate crude slipped 33 cents, or 0.52%, to $63.34. Both benchmarks, which traded close to their highest in two-weeks in the previous session, fell after data from the Energy Information Administration showed crude stockpiles rose by 3.5 million barrels to 441.8 million barrels last week. Analysts in a Reuters poll had expected a 1.1 million-barrel draw. Net U.S. crude imports rose last week by 422,000 barrels per day, the EIA said. API industry data also showed a large build of 4.3 million barrels in crude stocks last week, market sources said on Tuesday. 'Definitely, the crude build in the API numbers was not of help,' UBS analyst Giovanni Staunovo said of Wednesday's oil price fall. Crude oil climbs more than $1 on tariff cuts The Organization of the Petroleum Exporting Countries and allied producers, known as OPEC+, has been increasing supply to the market. On Wednesday, however, OPEC trimmed its forecast for growth in oil supply from the United States and other producers outside the wider OPEC+ group this year. 'They are not changing their demand profile but adding more barrels,' said Bob Yawger, director of energy futures at Mizuho. 'At some point, supply is just going to swamp out demand and drill the market lower.'
