Latest news with #BrentCrude
IOL News
14 hours ago
- Automotive
- IOL News
Petrol price outlook improves, but bad news for bakkie drivers as diesel increase looms
The fuel price outlook for August is a mixed bag, with petrol prices predicted to decrease and diesel costs set for a significant increase. Data from our friends over at the Central Energy Fund (CEF) shows an over-recovery for petrol that points to potential decreases of 30 cents for 95 Unleaded and 34 cents for 93 Unleaded. Diesel, which powers most bakkies and some SUVs such as the Toyota Fortuner, will see increases in the region of 62 cents for 500ppm and 64 cents for 50ppm. The anticipated August fuel price adjustment is primarily due to movements in international product prices, while a slightly stronger rand is providing relief of around six cents. But why is petrol going down and diesel up? These prices are determined by international demand patterns, which usually see diesel prices spiking in the northern hemisphere's summer and winter periods. In the summer months, higher diesel prices can be observed due to increased travel and economic activity. ALSO READ: How South Africa's fuel taxes affect daily life The past month has seen relatively stable international oil prices, with Brent Crude trading in the range between $67 and $70 per barrel, after averaging $69 during the previous review period. July's fuel price increase was the first in five months, with petrol rising by between 52 cents and 55 cents, and diesel going up by 82 cents to 84 cents. On the upside, petrol is only marginally more expensive than it was at the beginning of this year, when 95 ULP cost R20.80 at the coast. The predicted decrease for August will bring prices back into line with where they were in January 2025. IOL Motoring
Reuters
a day ago
- Business
- Reuters
Oil rises over 1% as investors weigh Trump's Russia stance, tariff threats
HOUSTON, July 30 (Reuters) - Oil prices climbed more than 1% on Wednesday as investors focused on developments on U.S. President Donald Trump's tighter deadline for Russia to end the war in Ukraine and his tariff threats to countries that trade its oil. The most active Brent crude futures were up $1.02 or about 1.4%, to $72.69 a barrel by 01:25 p.m. ET (1726 GMT). U.S. West Texas Intermediate crude was up $1.18 at $70.39 with investors largely shrugging off mixed U.S. data on crude and fuel inventories. The Brent crude September contract that expires on Wednesday was up $1.02 at $73.53. Both contracts had fallen nearly 1% earlier in the day. On Tuesday, Trump said he would start imposing measures on Russia, such as secondary tariffs of 100% on trading partners, if it did not make progress on ending the war in Ukraine within 10 to 12 days, moving up from an earlier 50-day deadline. He imposed a 25% tariff on goods imported from India starting August 1, along with an unspecified penalty for buying Russian weapons and oil. The U.S. also warned China, the largest buyer of Russian oil, that it could face huge tariffs if it kept buying. JP Morgan analysts wrote that while China was unlikely to comply with U.S. sanctions, India has signaled it would do so, which could affect 2.3 million barrels per day (bpd) of Russian oil exports. "Traders seem more focused on the tariffs (related to Russia) and the compliance by India is being taken as a positive towards crude prices," Dennis Kissler, senior vice president of trading at BOK Financial. Meanwhile, U.S. crude inventories rose by 7.7 million barrels, the U.S. Energy Information Administration said, compared with analysts' expectations in a Reuters poll for a 1.3 million-barrel draw. U.S. gasoline stocks fell by 2.7 million barrels compared with analysts' expectations in a Reuters poll for a 0.6 million-barrel draw. Distillate stockpiles, which include diesel and heating oil, rose by 3.6 million barrels versus expectations for a 0.3 million-barrel rise, the EIA data showed. U.S. economic growth also rebounded more than expected in the second quarter, but that measurement grossly overstated the economy's health as declining imports accounted for the bulk of the improvement and domestic demand increased at its slowest pace in 2-1/2 years. The Federal Reserve is expected to leave interest rates unchanged on Wednesday, even as President Donald Trump continued to push the U.S. central bank to cut borrowing costs.
Reuters
a day ago
- Business
- Reuters
Oil edges up as investors weigh Trump's Russia stance, tariff threats
HOUSTON, July 30 (Reuters) - Oil prices edged higher on Wednesday as investors focused on developments on U.S. President Donald Trump's tighter deadline for Russia to end the war in Ukraine and his tariff threats to countries that trade its oil. The most active Brent crude futures were up 40 cents or about 0.6%, to $72.09 a barrel by 11:28 a.m. ET (1528 GMT). U.S. West Texas Intermediate crude was up 76 cents at $69.97 with investors largely shrugging off mixed U.S. data on crude and fuel inventories. The Brent crude September contract that expires on Wednesday was up 37 cents at $72.88. Both contracts had fallen nearly 1% earlier in the day. Trump had said on Tuesday that he would start imposing measures on Russia, such as secondary tariffs of 100% on trading partners, if it did not make progress on ending the Ukraine war within 10 to 12 days, moving up from an earlier 50-day deadline. He imposed a 25% tariff on goods imported from India starting August 1, along with an unspecified penalty for buying Russian weapons and oil, potentially straining relations with the world's most populous democracy. The United States also warned China, the largest buyer of Russian oil, that it could face huge tariffs if it kept buying. JP Morgan analysts wrote that while China was unlikely to comply with U.S. sanctions, India has signalled it would do so, which could affect 2.3 million barrels per day (bpd) of Russian oil exports. "Traders seem more focused on the tariffs (related to Russia) and the compliance by India is being taken as a positive towards crude prices," Dennis Kissler, senior vice president of trading at BOK Financial. Meanwhile, U.S. crude inventories rose by 7.7 million barrels, the U.S. Energy Information Administration said, compared with analysts' expectations in a Reuters poll for a 1.3 million-barrel draw. U.S. gasoline stocks fell by 2.7 million barrels compared with analysts' expectations in a Reuters poll for a 0.6 million-barrel draw. Distillate stockpiles, which include diesel and heating oil, rose by 3.6 million barrels versus expectations for a 0.3 million-barrel rise, the EIA data showed.
Reuters
a day ago
- Business
- Reuters
Oil steadies as market weighs up supply risks
LONDON, July 30 (Reuters) - Oil prices steadied on Wednesday as investors awaited developments on U.S. President Donald Trump's tighter deadline for Russia to end the war in Ukraine and his tariff threats to countries that trade its oil. The most active Brent crude futures were down 5 cents or about 0.1%, at $71.63 a barrel by 1226 GMT while U.S. West Texas Intermediate crude slipped 5 cents to $69.61. The Brent crude September contract that expires on Wednesday was steady at $72.50. Both contracts had fallen nearly 1% earlier in the day. "Events in the last few days have moved the needle a touch more, but we still appear to be somewhat rangebound and testing the next resistance level," said Rystad Energy analyst Janiv Shah. Trump had said on Tuesday that he would start imposing measures on Russia, such as secondary tariffs of 100% on trading partners, if it did not make progress on ending the war within 10 to 12 days, moving up from an earlier 50-day deadline. The United States also warned China, the largest buyer of Russian oil, that it could face huge tariffs if it kept buying, Treasury Secretary Scott Bessent told a news conference in Stockholm. JP Morgan analysts wrote that while China was unlikely to comply with U.S. sanctions, India has signalled it would do so, which could affect 2.3 million barrels per day (bpd) of Russian oil exports. "Oil prices reacted strongly yesterday, so there is some profit booking," said UBS commodity analyst Giovanni Staunovo, adding that data from the American Petroleum Institute from Tuesday was also bearish for crude. "Market participants are also taking into account that low prices and secondary sanctions/tariffs on Russia won't work at the same time." U.S. crude and distillate stocks rose last week while gasoline inventories fell, market sources said, citing API data. "Depending on the outcome of the U.S.-Russia discussions, tariff implementation and the OPEC+ meeting and announcement on unwinding (of output cuts), the market could see some movement," Rystad's Shah added.
Reuters
a day ago
- Business
- Reuters
Oil prices fall on profit-taking as market weighs up supply risks
LONDON, July 30 (Reuters) - Oil prices fell nearly 1% on Wednesday as investors awaited developments on U.S. President Donald Trump's tighter deadline for Russia to end the war in Ukraine and his tariff threats to countries that trade its oil. The most active Brent crude futures lost 68 cents, or 0.95%, to $71 a barrel by 1103 GMT while U.S. West Texas Intermediate crude slipped by 70 cents, or 1%, to $68.51. The Brent crude September contract that expires on Wednesday was down 69 cents, or 0.95%, at $71.82. Both contracts had settled on Tuesday at their highest since June 20. "Events in the last few days have moved the needle a touch more, but we still appear to be somewhat rangebound and testing the next resistance level," said Rystad Energy analyst Janiv Shah. Trump had said on Tuesday that he would start imposing measures on Russia, such as secondary tariffs of 100% on trading partners, if it did not make progress on ending the war within 10 to 12 days, moving up from an earlier 50-day deadline. The United States also warned China, the largest buyer of Russian oil, that it could face huge tariffs if it kept buying, Treasury Secretary Scott Bessent told a news conference in Stockholm. JP Morgan analysts wrote that while China was unlikely to comply with U.S. sanctions, India has signalled it would do so, which could affect 2.3 million barrels per day (bpd) of Russian oil exports. "Oil prices reacted strongly yesterday, so there is some profit booking," said UBS commodity analyst Giovanni Staunovo, adding that data from the American Petroleum Institute from Tuesday was also bearish for crude. "Market participants are also taking into account that low prices and secondary sanctions/tariffs on Russia won't work at the same time." U.S. crude and distillate stocks rose last week while gasoline inventories fell, market sources said, citing API data. "Depending on the outcome of the U.S.-Russia discussions, tariff implementation and the OPEC+ meeting and announcement on unwinding (of output cuts), the market could see some movement," Rystad's Shah added.
