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Economy ME
17 hours ago
- Business
- Economy ME
Crude oil prices climb above $69.2 as U.S.-China trade truce and EU deal support market
Oil prices extended their upward trajectory on Tuesday, buoyed by optimism for enhanced economic activity following the U.S.-EU trade deal, a potential truce in U.S.-China tariffs, and President Donald Trump's expedited timeline for Russia to conclude the Ukraine war. By 00:00 GMT, Brent crude futures increased by 24 cents, or 0.34 percent, reaching $70.28 a barrel (currently trading above $69.2), while U.S. West Texas Intermediate crude rose 22 cents, or 0.33 percent, to $66.93 a barrel (currently trading above $66.62). Both contracts had settled more than 2 percent higher in the preceding session, with Brent achieving its peak level since July 18 on Monday. Support from U.S.-China trade truce The trade agreement between the United States and the European Union, while imposing a 15 percent import tariff on the majority of EU goods, averted a catastrophic trade war between these significant partners that could have reverberated across nearly a third of global trade and dampened the outlook for fuel demand. Oil prices also gained support from reports of a potential extension of the trade truce between the U.S. and China, with senior economic officials from both nations convening in Stockholm on Monday for over five hours of discussions. These talks are anticipated to continue on Tuesday. In the meantime, Trump set a new deadline on Monday, stating '10 or 12 days' for Russia to make headway toward ending the war in Ukraine or face potential sanctions. He has warned of sanctions against both Russia and purchasers of its exports unless notable progress is achieved. Tuesday's subdued movements reflected investor caution in advance of the Federal Reserve meeting commencing later that day, alongside a range of significant U.S. economic data expected this week. Read more: Oil prices rise to $68.92 as U.S.-EU trade deal eases demand concerns OPEC+ supply compliance discussion Market participants were also evaluating the progress of the U.S. trade deal ahead of Trump's imminent deadline. The U.S.–EU agreement, announced on Sunday, imposes a 15 percent tariff on most European exports to the United States, reduced from an initially threatened 30 percent. It includes a pledge from the EU to purchase $750 billion worth of U.S. energy products in the upcoming years. Analysts indicated that the dual factors of diminished trade uncertainty and long-term demand commitments enhanced investor risk appetite, thereby supporting oil prices. On the supply front, an OPEC+ panel has urged full adherence to established quotas as a ministerial meeting on August 3 prepares to deliberate on a potential production increase for September. Investors remain cautious as they anticipate U.S. economic data and the Federal Reserve policy meeting. The central bank is set to commence its two-day gathering on Tuesday, with expectations to maintain interest rates within the 4.25 percent to 4.50 percent range.
Reuters
22-07-2025
- Business
- Reuters
Oil prices fall as key trade talks falter ahead of tariff deadline
NEW YORK, July 22 (Reuters) - Oil prices fell for a third consecutive session on Tuesday, as fading hopes for a trade deal between the U.S. and Europe threatened to slow economic activity in the world's largest oil markets. Brent crude futures were down 92 cents, or 1.3%, to $68.29 a barrel by 12:03 p.m. EDT. U.S. West Texas Intermediate crude futures for August delivery, set to expire on Tuesday, fell $1.09, or 1.6%, to $66.11 per barrel. The more active September WTI contract was down 92 cents, or 1.4%, to $65.03 a barrel. The European Union was exploring a broader set of possible counter-measures against the U.S. as prospects for an acceptable trade agreement with Washington fade, EU diplomats told Reuters on Tuesday. U.S. President Donald Trump, who has set an August 1 deadline for countries to secure trade deals or face steep tariffs, earlier threatened a 30% tariff on EU imports if a deal is not reached. Prospects of an interim trade deal between the U.S. and India before that deadline have also dimmed, two Indian government sources told Reuters. "It appears that tariff factor is becoming a greater focus ahead of the U.S. deadline," analysts at energy advisory firm Ritterbusch and Associates said in a note. Diesel was the top decliner across the energy complex, reflecting concerns about the economic outlook. The industrial fuel, used predominantly in manufacturing, construction and heavy transport, had been the top performer in oil markets over recent weeks due to tight global supplies. U.S. ultra-low sulfur diesel futures slid more than 3% on Tuesday to $102.16 a barrel. Still, crude price declines may be limited by the possibility that the U.S. could scale back the tariffs it has threatened or even delay them, Ritterbusch and Associates said. Meanwhile, a Reuters poll of analysts showed U.S. crude oil inventories likely fell by about 600,000 barrels in the week to July 18.
Yahoo
21-07-2025
- Business
- Yahoo
Inflation impact on business: 'Bigger issue' is customer demand
Inflation concerns linger as economic activity seems to be picking up despite uncertainty around tariffs. Scott Sperling, THL Partners co-CEO, joins Market Catalysts to discuss how tech businesses haven't been severely impacted by inflation but are still remaining cautious about customer demand. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
