Latest news with #MUFG
Wall Street Journal
9 hours ago
- Business
- Wall Street Journal
Gold Futures Slip on U.S. Trade Deal Optimism
1303 GMT – Gold futures edge lower after a three-day rally. Futures are down 0.3% at $3,434.0 a troy ounce, but remain up 2.9% on week. The precious metal has corrected slightly lower as the U.S.-Japan trade deal calms market nerves, MUFG analysts say in a note. The deal signals some progress in broader trade talks ahead of the looming Aug. 1 implementation of U.S. tariffs, reducing demand for safe-haven assets like gold, MUFG says. Despite the pullback, gold remains up nearly 30% year-to-date on persistent global trade tensions and geopolitical conflicts, the analysts write. The market is also watching upcoming U.S.-China trade negotiations and the U.S. Federal Reserves outlook for monetary policy, as recent comments from Treasury Secretary Scott Bessent eases fears over the central bank's independence, MUFG adds. ( 0728 GMT – Gold futures are broadly flat, holding higher prices after rallying for three consecutive sessions. Futures trade at $3,442.30 a troy ounce, and are up more than 3% on week. Gold's gains have chiefly been supported by escalating geopolitical risks, optimism about an easing in U.S. monetary policy, and persistent central-bank purchases, Linh Tran says in a note. These factors are supporting gold's role as a safe-haven and store-of-value asset, Tran says. The precious metal still appears to have significant potential in the near to medium-term, Tran writes. Given consistent geopolitical and macroeconomic uncertainty, gold is well-placed to continue serving as a safe-haven asset for both institutional and individual investors, she adds. (
Gulf Insider
16 hours ago
- Business
- Gulf Insider
The World's Most Critical Oil Chokepoints
The total volume of oil passing through the Strait of Hormuz stands around a staggering $600 billion. While a blockade of the strait is considered a distant possibility, its closure could ripple across global supply chain networks. In particular, Japan, China, and India would be impacted the most. Furthermore, a shock to oil prices would likely affecting production costs, in turn raising the price of consumer goods. This graphic, via Visual Capitalist's Dorothy Neufeld, shows the most vital oil transit chokepoints, based on data from MUFG. Below, we show how the Strait of Hormuz sees the second-highest volume of oil passing through its corridor globally: In 2023, 20.9 million barrels of oil flowed through the Strait of Hormuz, which lies between Iran and Oman. Iran largely controls this waterway, where 20% of global oil consumption is transported across this shipping route. In response to Israel-Iran conflicts, oil production surged by 950,000 barrels per day in June—largely driven by Saudi Arabian output. While tensions have recently flared between Israel and Syria, it remains to be seen if conflict will resurface with Iran. Earlier in July, Israeli officials met with Trump to discuss certain scenarios that would justify a future attack on Iran—including the resumption of nuclear enrichment activities. To learn more about industrial resources from a global perspective, check out this graphic on the top 25 countries by proven oil reserves. Also read: ZATCA Foils Attempt To Smuggle 310,000 Captagon Pills Through Jeddah Port
Business Recorder
a day ago
- Business
- Business Recorder
Oil prices fall as tariff deadline looms
LONDON: Oil prices declined for a third consecutive session on Tuesday on concerns the brewing trade war between major crude consumers the United States and the European Union will curb fuel demand growth by reducing economic activity. Brent crude futures were down 53 cents, or 0.8%, to $68.68 a barrel at 1219 GMT. U.S. West Texas Intermediate crude was at $66.57 a barrel, down 63 cents, or 0.9%. The August WTI contract expires on Tuesday and the more active September contract was down 52 cents, or 0.8%, to $65.43 a barrel. 'Oil prices fell for a third straight session … as urgency builds in trade negotiations between the U.S. and its partners,' Soojin Kim, an analyst at bank MUFG, said in a note. The Trump administration has set an August 1 deadline for countries to secure trade deals or face steep tariffs. The EU is exploring a broader set of possible counter-measures against the United States as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats. The U.S. has threatened to impose a 30% tariff on EU imports if a deal is not reached. A weaker dollar has limited some losses for crude as buyers using other currencies are paying relatively less. Prices have slipped 'as trade war concerns offset the support by a softer (U.S. dollar),' IG market analyst Tony Sycamore wrote in a note. Stronger distillate profit margins due to low inventories are also supporting crude prices. 'The move lower might have seen more momentum if it were not for the continued performance in distillates which continues to be aided by low stocks,' PVM Oil analyst John Evans said in a note. 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.
Time of India
a day ago
- Business
- Time of India
Oil prices fall as tariff deadline looms
Oil prices declined for a third consecutive session on Tuesday on concerns the brewing trade war between major crude consumers the United States and the European Union will curb fuel demand growth by reducing economic activity . Brent crude futures were down 49 cents, or 0.7 per cent, to $68.72 a barrel at 0915 GMT. US West Texas Intermediate crude was at $66.60 a barrel, down 60 cents, or 0.9 per cent. The August WTI contract expires on Tuesday and the more active September contract was down 47 cents, or 0.7 per cent, to $65.48 a barrel. "Oil prices fell for a third straight session ... as urgency builds in trade negotiations between the US and its partners," Soojin Kim, an analyst at bank MUFG, said in a note. The Trump administration has set an August 1 deadline for countries to secure trade deals or face steep tariffs. The EU is exploring a broader set of possible counter-measures against the United States as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats. The US has threatened to impose a 30 per cent tariff on EU imports if a deal is not reached. A weaker dollar has limited some losses for crude as buyers using other currencies are paying relatively less. Prices have slipped "as trade war concerns offset the support by a softer (US dollar)," IG market analyst Tony Sycamore wrote in a note. Stronger distillate profit margins due to low inventories are also supporting crude prices. "The move lower might have seen more momentum if it were not for the continued performance in distillates which continues to be aided by low stocks," PVM Oil analyst John Evans said in a note. 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.
Reuters
2 days ago
- Business
- Reuters
Oil prices fall as tariff deadline looms
LONDON, July 22 (Reuters) - Oil prices declined for a third consecutive session on Tuesday on concerns the brewing trade war between major crude consumers the United States and the European Union will curb fuel demand growth by reducing economic activity. Brent crude futures were down 49 cents, or 0.7%, to $68.72 a barrel at 0915 GMT. U.S. West Texas Intermediate crude was at $66.60 a barrel, down 60 cents, or 0.9%. The August WTI contract expires on Tuesday and the more active September contract was down 47 cents, or 0.7%, to $65.48 a barrel. "Oil prices fell for a third straight session ... as urgency builds in trade negotiations between the U.S. and its partners," Soojin Kim, an analyst at bank MUFG, said in a note. The Trump administration has set an August 1 deadline for countries to secure trade deals or face steep tariffs. The EU is exploring a broader set of possible counter-measures against the United States as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats. The U.S. has threatened to impose a 30% tariff on EU imports if a deal is not reached. A weaker dollar has limited some losses for crude as buyers using other currencies are paying relatively less. Prices have slipped "as trade war concerns offset the support by a softer (U.S. dollar)," IG market analyst Tony Sycamore wrote in a note. Stronger distillate profit margins due to low inventories are also supporting crude prices. "The move lower might have seen more momentum if it were not for the continued performance in distillates which continues to be aided by low stocks," PVM Oil analyst John Evans said in a note. 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.
