Latest news with #FuelDemand
Arab News
a day ago
- Business
- Arab News
Oil Updates — prices rise as US-EU deal boosts trade optimism
SINGAPORE: Oil prices rose on Monday after the US clinched a trade deal with the EU and may extend a tariff pause with China, relieving concerns that higher levies could have hurt economic activity and limited fuel demand. Brent crude futures inched up 61 cents, or 0.89 percent, to $69.05 a barrel by 8:47 a.m. Saudi time, while US West Texas Intermediate crude stood at $65.75 a barrel, up 59 cents, or 0.91 percent. The US-European Union trade deal and a possible extension in the US-China tariff pause are supporting global financial markets and oil prices, IG markets analyst Tony Sycamore said. 'With the risk of a prolonged trade war and the importance of the August tariff deadlines being steadily defused, markets have responded positively,' he added in a note. Sunday's US-EU framework trade pact sets an import tariff of 15 percent on most EU goods, half the threatened rate. The deal averted a bigger trade war between two allies that account for almost one-third of global trade and could crimp fuel demand. Also set for Monday is a meeting in Stockholm of senior US and Chinese negotiators aiming to extend before an Aug. 12 deadline a truce holding off sharply higher tariffs. Oil prices settled on Friday at their lowest in three weeks, weighed down by global trade concerns and expectations of more oil supply from Venezuela. State-run oil company PDVSA is readying to resume work at its joint ventures under terms similar to Biden-era licenses, once US President Donald Trump reinstates authorizations for its partners to operate and export oil under swaps, company sources said. Though prices were up slightly on Monday, gains were limited by the prospect of OPEC+ further easing supply curbs. A market monitoring panel of the Organization of the Petroleum Exporting Countries and their allies is set to meet at 1200 GMT on Monday. It is unlikely to recommend altering existing plans by eight members to raise oil output by 548,000 barrels per day in August, four OPEC+ delegates said last week, though another source said it was too early to say. ING expects OPEC+ will at least complete the full return of 2.2 million barrels per day of the additional voluntary supply cuts by the end of September. That would work out to a supply hike in September of at least 280,000 barrels per day. However, there is clearly room for a more aggressive hike. The producer group is keen to recover market share while summer demand is helping to absorb the extra barrels. JP Morgan analysts said global oil demand rose by 600,000 bpd in July on year, while global oil stocks rose 1.6 million bpd. In the Middle East, Yemen's Houthis said on Sunday they would target ships of companies that do business with Israeli ports, regardless of nationality, in what they called a fourth phase of military operations against Israel over the Gaza conflict.
Reuters
a day ago
- Business
- Reuters
Oil rises as US-EU deal boosts trade optimism
SINGAPORE, July 28 (Reuters) - Oil prices rose on Monday after the United States clinched a trade deal with the European Union and may extend a tariff pause with China, relieving concerns that higher levies could have hurt economic activity and limited fuel demand. Brent crude futures inched up 20 cents, or 0.29%, to $68.64 a barrel by 0336 GMT, while U.S. West Texas Intermediate crude stood at $65.31 a barrel, up 15 cents, or 0.23%. The US-European Union trade deal and a possible extension in the US-China tariff pause are supporting global financial markets and oil prices, IG markets analyst Tony Sycamore said. "With the risk of a prolonged trade war and the importance of the August tariff deadlines being steadily defused, markets have responded positively," he added in a note. Sunday's US-EU framework trade pact sets an import tariff of 15% on most EU goods, half the threatened rate. The deal averted a bigger trade war between two allies that account for almost one-third of global trade and could crimp fuel demand. Also set for Monday is a meeting in Stockholm of senior US and Chinese negotiators aiming to extend before an August 12 deadline a truce holding off sharply higher tariffs. Oil prices settled on Friday at their lowest in three weeks weighed down by global trade concerns and expectations of more oil supply from Venezuela. State-run oil company PDVSA is readying to resume work at its joint ventures under terms similar to Biden-era licenses, once U.S. President Donald Trump reinstates authorisations for its partners to operate and export oil under swaps, company sources said. Though prices were up slightly on Monday, gains were limited by the prospect of OPEC+ further easing supply curbs. A market monitoring panel of the Organization of the Petroleum Exporting Countries and their allies is set to meet at 1200 GMT on Monday. It is unlikely to recommend altering existing plans by eight members to raise oil output by 548,000 barrels per day in August, four OPEC+ delegates said last week, though another source said it was too early to say. ING expects OPEC+ will at least complete the full return of 2.2 million barrels per day of the additional voluntary supply cuts by the end of September. That would work out to a supply hike in September of at least 280,000 barrels per day. However, there is clearly room for a more aggressive hike. The producer group is keen to recover market share while summer demand is helping to absorb the extra barrels. JP Morgan analysts said global oil demand rose by 600,000 bpd in July on year, while global oil stocks rose 1.6 million bpd. In the Middle East, Yemen's Houthis said on Sunday they would target ships of companies that do business with Israeli ports, regardless of nationality, in what they called a fourth phase of military operations against Israel over the Gaza conflict.
Reuters
a day ago
- Business
- Reuters
Oil rises as US-EU deal lifts trade optimism
SINGAPORE, July 28 (Reuters) - Oil prices rose on Monday after the U.S. reached a trade deal with the European Union and may extend a tariff pause with China, reducing concerns that potentially higher levies would limit economic activity and impact fuel demand. Brent crude futures inched up 22 cents, or 0.32%, to $68.66 a barrel by 0035 GMT while U.S. West Texas Intermediate crude was at $65.38 a barrel, up 22 cents, or 0.34%. The U.S.-European Union trade deal and a possible extension in U.S.-China tariff pause are supporting global financial markets and oil prices, IG markets analyst Tony Sycamore said. The United States and the European Union struck a framework trade agreement on Sunday that will impose a 15% import tariff on most EU goods, half the threatened rate. The deal averted a bigger trade war between two allies that account for almost one-third of global trade and could crimp fuel demand. Also, senior U.S. and Chinese negotiators will meet in Stockholm on Monday aiming to extend a truce keeping sharply higher tariffs at bay ahead of the August 12 deadline. Oil prices settled on Friday at their lowest in three weeks as global trade concerns and expectations of more oil supply from Venezuela weighed. Venezuela's state-run oil company PDVSA is getting ready to resume work at its joint ventures under terms similar to Biden-era licenses, once U.S. President Donald Trump reinstates authorisations for its partners to operate and export oil under swaps, company sources said. Though prices were up slightly on Monday, the prospect of OPEC+ further easing supply curbs limited the gains. A market monitoring panel of the Organization of the Petroleum Exporting Countries and their allies is set to meet at 1200 GMT on Monday. It is unlikely to recommend altering existing plans by eight members to raise oil output by 548,000 barrels per day in August, four OPEC+ delegates said last week. Another source said it was too early to say. The producer group is keen to recover market share while summer demand is helping to absorb the extra barrels. JP Morgan analysts said global oil demand rose by 600,000 bpd in July on year, while global oil stocks rose 1.6 million bpd. In the Middle East, Yemen's Houthis said on Sunday they would target any ships belonging to companies that do business with Israeli ports, regardless of their nationalities, as part of what they called the fourth phase of their military operations against Israel over the Gaza conflict.
The Herald
7 days ago
- Business
- The Herald
Oil price falls as trade war concerns increase worries about fuel demand
Oil prices declined on Tuesday as concerns the brewing trade war between major crude consumers the US and the EU will curb fuel demand growth by lowering economic activity weighed on investor sentiment. Brent crude futures fell 52c, or 0.75%, to $68.69 (R1,209) a barrel by 3.25 GMT. US West Texas Intermediate crude was at $66.69 (R1,174) a barrel, down 51c, or 0.76%. The benchmarks settled slightly lower on Monday. The August West Texas Intermediate contract expires on Tuesday and the more active September contract was down 54c, or 0.82%, to $65.41 (R1.151) a barrel. 'Broad demand concerns continue to simmer amid escalating global trade tensions, specially as markets eye the latest tariff threats between major economies and [US President Donald] Trump's potential announcements ahead of the August 1 deadline,' said Priyanka Sachdeva, senior market analyst at Phillip Nova.
Economy ME
22-07-2025
- Business
- Economy ME
Crude oil prices drop 0.75 percent to $68.60 amid rising trade tensions, demand concerns
Oil prices declined on Tuesday amid rising concerns that the escalating trade conflict between major crude consumers, the U.S. and the European Union, could hinder fuel demand growth by stifling economic activity, which has negatively impacted investor sentiment. Brent crude futures saw a decrease of 52 cents, or 0.75 percent, settling at $68.69 a barrel by 03:25 GMT (currently trading above $68.60). Meanwhile, U.S. West Texas Intermediate crude was priced at $66.69 a barrel, down 51 cents, or 0.76 percent (currently trading above $65.35). Both benchmarks experienced a slight decline on Monday. The August WTI contract is set to expire on Tuesday, with the more actively traded September contract dropping 54 cents, or 0.82 percent, to $65.41 a barrel. Supply concerns eased Supply concerns have largely diminished, thanks to major producers ramping up output and the ceasefire established on June 24, which ended the hostilities between Israel and Iran. However, apprehensions regarding the global economy are growing amid shifts in U.S. trade policy. In a significant development, the Iraqi government has officially resumed crude oil exports from the Kurdistan Region after a halt lasting over two years. This move is anticipated to ease tensions between Baghdad and Erbil while enhancing national export volumes. Kurdistan aims to contribute 230,000 barrels per day (bpd) of crude to Iraq's market once exports are fully operational. The prospect of increased crude exports from Iraq may augment global oil supplies and exert downward pressure on WTI prices in the short term. Furthermore, the impending U.S. tariff deadline could also affect WTI prices. U.S. tariffs on EU imports are expected to take effect on August 1, raising trade anxieties that extend beyond the oil sector. Commerce Secretary Howard Lutnick expressed optimism about reaching an agreement with the EU, yet the ongoing tariff risks continue to limit crude's potential for price increases. Read more: Oil prices climb to $69.36 as new EU sanctions hit Russian oil supplies Support from a weaker dollar The European Union's measures regarding Russian crude supply may lend some support to oil prices. Last week, the EU approved the 18th package of sanctions against Russia due to its conflict in Ukraine, which also targeted India's Nayara Energy, an exporter of oil products refined from Russian crude. This action followed U.S. President Donald Trump's threats to impose sanctions on buyers of Russian exports unless a peace deal is negotiated within 50 days. A weaker U.S. dollar has provided some support for crude prices, as buyers using alternative currencies are finding it relatively less expensive. The EU is also contemplating a wider array of counter-measures against the United States, as the chances of a favorable trade agreement with Washington continue to diminish, according to EU diplomats. The U.S. has threatened to implement a 30 percent tariff on EU imports come August 1 if no agreement is reached. Additionally, there are indications that the rising oil supply is beginning to saturate the market, as the Organization of the Petroleum Exporting Countries and their allies begin to unwind their output cuts. Data from the Joint Organizations Data Initiative (JODI) revealed that Saudi Arabia's crude oil exports in May surged to their highest level in three months.
