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Business Recorder
10-07-2025
- Business
- Business Recorder
Oil falls amid bearish Trump tariff outlook
LONDON: Oil prices fell by around 2% on Thursday, as investors weighed the potential impact of US President Donald Trump's tariffs on global economic growth. Brent crude futures were down $1.42, or 2.02%, at $68.77 a barrel by 1327 GMT. US West Texas Intermediate crude fell $1.61, or 2.35%, to $66.77 a barrel. On Wednesday, Trump threatened Brazil, Latin America's largest economy, with a punitive 50% tariff on exports to the US, after a public dispute with his Brazilian counterpart Luiz Inacio Lula da Silva. Brazil's Lula called a meeting with ministers on Thursday to decide his country's reaction, having hinted in a post on social media on Wednesday that tariffs would be met with reciprocal measures. Trump has also announced plans for tariffs on copper, semiconductors and pharmaceuticals and his administration sent tariff letters to the Philippines, Iraq and others, adding to over a dozen letters issued earlier in the week including for powerhouse US suppliers South Korea and Japan. Trump's history of back-pedalling on tariffs has caused the market to become less reactive to such announcements, said Harry Tchilinguirian, group head of research at Onyx Capital Group. 'People are largely in wait-and-see mode, given the erratic nature of policymaking and the flexibility the administration is showing around tariffs,' Tchilinguirian said. Policymakers remain worried about the inflationary pressures from Trump's tariffs, with only 'a couple' of officials at the Federal Reserve's June 17-18 meeting saying they felt interest rates could be reduced as soon as this month, minutes of the meeting released on Wednesday showed. Higher interest rates make borrowing more expensive and reduce demand for oil. OPEC+ oil producers are set to approve another big output boost for September, as they complete both the unwinding of voluntary production cuts by eight members and the United Arab Emirates' move to a larger quota. Elsewhere, US Secretary Of State Marco Rubio held 'frank' talks with Russian Foreign Minister Sergei Lavrov in which he expressed the United States' frustration around a lack of progress in ending the war in Ukraine. President Trump said recently he was considering a bill that would impose tougher sanctions on Russia.
Business Times
10-07-2025
- Business
- Business Times
Oil falls amid bearish Trump tariff outlook
[HOUSTON] Oil prices fell more than 2 per cent on Thursday, as investors weighed the potential impact of US President Donald Trump's tariffs on global economic growth. Brent crude futures settled at US$68.64 a barrel, down US$1.55, or 2.21 per cent. US West Texas Intermediate crude finished at US$66.57 a barrel, down by US$1.81, or 2.65 per cent. On Wednesday, Trump threatened Brazil, Latin America's largest economy, with a punitive 50 per cent tariff on exports to the US, pressuring his Brazilian counterpart Luiz Inacio Lula da Silva over Brazil's trial of former President Jair Bolsonaro over charges of plotting a coup to stop Lula from taking office in 2023. On Thursday, Lula called a meeting with ministers, a day after hinting at reciprocal measures in a post on social media. Trump has also announced plans for tariffs on copper, semiconductors and pharmaceuticals. His administration sent tariff letters to the Philippines, Iraq and others, adding to over a dozen letters this week including to powerhouse US suppliers South Korea and Japan. 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 Trump's history of back-pedalling on tariffs has caused the market to become less reactive to such announcements, said Harry Tchilinguirian, group head of research at Onyx Capital Group. 'People are largely in wait-and-see mode, given the erratic nature of policymaking and the flexibility the administration is showing around tariffs,' Tchilinguirian said. Policymakers remain worried about inflationary pressures from Trump's tariffs, with only 'a couple' of officials at the Federal Reserve's June 17-18 meeting saying they felt interest rates could be reduced as soon as this month, minutes of the meeting released on Wednesday showed. Higher interest rates make borrowing more expensive and can slow demand for oil. Opec+ oil producers are set to approve another big output boost for September, as they complete unwinding voluntary production cuts by eight members and the United Arab Emirates' move to a larger quota. However, Opec+ indicated it may pause output hikes in October because of a possible peak in oil demand, said Phil Flynn, senior analyst with Price Futures Group. 'Earlier fears of reaching 'peak oil' have not materialised, and rising prices incentivise the discovery of new oil sources, both domestically and offshore,' Flynn wrote in a note on Thursday. Elsewhere, US Secretary of State Marco Rubio held 'frank' talks with Russian Foreign Minister Sergei Lavrov in which he expressed Washington's frustration around a lack of progress in ending the war in Ukraine. Trump said recently he was considering a bill that would impose tougher sanctions on Russia. REUTERS
Observer
10-07-2025
- Business
- Observer
Oil edges down amid bearish Trump tariff outlook
LONDON:Oil prices declined moderately on Thursday as investors weighed the potential impact of US President Donald Trump's tariffs on global economic growth. Brent crude futures were down 23 cents, or 0.3%, at $69.96 a barrel by 0904 GMT. US West Texas Intermediate crude fell 32 cents, or 0.5%, to $68.06 a barrel. On Wednesday, Trump threatened Brazil, Latin America's largest economy, with a punitive 50% tariff on exports to the US after a public spat with his Brazilian counterpart Luiz Inacio Lula da Silva. He also announced plans for tariffs on copper, semiconductors, and pharmaceuticals, and his administration sent tariff letters to the Philippines, Iraq, and others. These were in addition to more than a dozen letters issued earlier in the week, including to key US suppliers South Korea and Japan. Trump's history of backpedaling on tariffs has made markets less reactive to such announcements, said Harry Tchilinguirian, group head of research at Onyx Capital Group. "People are largely in wait-and-see mode, given the erratic nature of policymaking and the flexibility the administration is showing around tariffs," Tchilinguirian said. Policymakers remain concerned about inflationary pressures from the tariffs. Minutes from the Federal Reserve's June 17–18 meeting showed that only "a couple" of officials believed interest rates could be reduced as soon as this month. Higher interest rates increase borrowing costs and reduce demand for oil. However, a weaker US dollar during Thursday's Asia trading session helped support oil prices, according to OANDA senior analyst Kelvin Wong. A weaker dollar typically lifts oil prices by making them cheaper for holders of other currencies. US crude stocks rose, while gasoline and distillate inventories fell last week, the Energy Information Administration reported Wednesday. Gasoline demand rose 6% to 9.2 million barrels per day last week, the EIA said. Global daily flights averaged 107,600 during the first eight days of July, an all-time high. Flights in China reached a five-month peak, and port and freight activity showed "sustained expansion" in trade from last year, according to a JP Morgan client note. "Year to date, global oil demand growth is averaging 0.97 million barrels per day, in line with our forecast of 1 million barrels per day," the note said. There is also skepticism that the recent increase in production quotas announced by OPEC+ will result in a real rise in output. Some members are already exceeding their quotas, while others, such as Russia, cannot meet targets due to damaged oil infrastructure, said Tony Sycamore, an analyst at IG. OPEC+ oil producers are set to approve another major output boost for September as they complete both the unwinding of voluntary production cuts by eight members and the United Arab Emirates' move to a larger quota.— Reuters
CNA
10-07-2025
- Business
- CNA
Oil falls amid bearish Trump tariff outlook
LONDON :Oil prices fell by around 2 per cent on Thursday, as investors weighed the potential impact of U.S. President Donald Trump's tariffs on global economic growth. Brent crude futures were down $1.42, or 2.02 per cent, at $68.77 a barrel by 1327 GMT. U.S. West Texas Intermediate crude fell $1.61, or 2.35 per cent, to $66.77 a barrel. On Wednesday, Trump threatened Brazil, Latin America's largest economy, with a punitive 50 per cent tariff on exports to the U.S., after a public dispute with his Brazilian counterpart Luiz Inacio Lula da Silva. Brazil's Lula called a meeting with ministers on Thursday to decide his country's reaction, having hinted in a post on social media on Wednesday that tariffs would be met with reciprocal measures. Trump has also announced plans for tariffs on copper, semiconductors and pharmaceuticals and his administration sent tariff letters to the Philippines, Iraq and others, adding to over a dozen letters issued earlier in the week including for powerhouse U.S. suppliers South Korea and Japan. Trump's history of back-pedalling on tariffs has caused the market to become less reactive to such announcements, said Harry Tchilinguirian, group head of research at Onyx Capital Group. "People are largely in wait-and-see mode, given the erratic nature of policymaking and the flexibility the administration is showing around tariffs," Tchilinguirian said. Policymakers remain worried about the inflationary pressures from Trump's tariffs, with only "a couple" of officials at the Federal Reserve's June 17-18 meeting saying they felt interest rates could be reduced as soon as this month, minutes of the meeting released on Wednesday showed. Higher interest rates make borrowing more expensive and reduce demand for oil. OPEC+ oil producers are set to approve another big output boost for September, as they complete both the unwinding of voluntary production cuts by eight members and the United Arab Emirates' move to a larger quota. Elsewhere, U.S. Secretary Of State Marco Rubio held "frank" talks with Russian Foreign Minister Sergei Lavrov in which he expressed the United States' frustration around a lack of progress in ending the war in Ukraine.
Mint
10-07-2025
- Business
- Mint
Oil edges down amid bearish Trump tariff outlook
LONDON -Oil prices edged lower on Thursday as investors weighed the potential impact of U.S. President Donald Trump's tariffs on global economic growth. Brent crude futures were down 17 cents, or 0.24%, at $70.02 a barrel by 1100 GMT. U.S. West Texas Intermediate crude fell 24 cents, or 0.35%, to $68.14 a barrel. On Wednesday, Trump threatened Brazil, Latin America's largest economy, with a punitive 50% tariff on exports to the U.S., after a public spat with his Brazilian counterpart Luiz Inacio Lula da Silva. He has also announced plans for tariffs on copper, semiconductors and pharmaceuticals and his administration sent tariff letters to the Philippines, Iraq and others, adding to over a dozen letters issued earlier in the week including for powerhouse U.S. suppliers South Korea and Japan. Trump's history of back-pedalling on tariffs has caused the market to become less reactive to such announcements, said Harry Tchilinguirian, group head of research at Onyx Capital Group. "People are largely in wait and see mode, given the erratic nature of policymaking and the flexibility the administration is showing around tariffs," Tchilinguirian said. Policymakers remain worried about the inflationary pressures from Trump's tariffs, with only "a couple" of officials at the Federal Reserve's June 17-18 meeting saying they felt interest rates could be reduced as soon as this month, minutes of the meeting released on Wednesday showed. Higher interest rates make borrowing more expensive and reduce demand for oil. Supporting oil prices however was a weaker U.S. dollar in Thursday's Asia trading session, said OANDA senior analyst Kelvin Wong. A weaker dollar lifts oil prices by making it cheaper for holders of other currencies. U.S. crude stocks rose while gasoline and distillate inventories fell last week, the Energy Information Administration said on Wednesday. Gasoline demand rose 6% to 9.2 million barrels per day last week, the EIA said. Global daily flights were averaging 107,600 in the first eight days of July, an all-time high, with flights in China reaching a five-month peak and port and freight activities indicating "sustained expansion" in trade activities from last year, JP Morgan said in a client note. "Year to date, global oil demand growth is averaging 0.97 million barrels per day, in line with our forecast of 1 million barrels per day," the note said. Additionally, there is doubt the recent increase in production quotas announced by OPEC will result in an actual increase in production, as some members are already exceeding their quotas, said Tony Sycamore, an analyst at IG. "And others, like Russia, are unable to meet their targets due to damaged oil infrastructure," he said. OPEC oil producers are set to approve another big output boost for September, as they complete both the unwinding of voluntary production cuts by eight members and the United Arab Emirates' move to a larger quota.
