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Business Recorder
2 days ago
- Business
- Business Recorder
Oil rises as investors weigh market outlook, tariffs, sanctions
LONDON: Oil prices rose by around 1% on Friday as investors weighed a tight prompt market against a potential large surplus this year forecast by the IEA, while U.S. tariffs and possible further sanctions on Russia were also in focus. Brent crude futures were up 76 cents, or 1.11%, at $69.40 a barrel as of 1153 GMT. U.S. West Texas Intermediate crude ticked up 82 cents, or 1.23%, to $67.39 a barrel. At those levels, Brent was headed for a 1.6% gain on the week, while WTI was up around 0.6% from last week's close. The IEA said on Friday the global oil market may be tighter than it appears, with demand supported by peak summer refinery runs to meet travel and power-generation. Front-month September Brent contracts were trading at a $1.11 premium to October futures at 1153 GMT. 'Civilians, be they in the air or on the road, are showing a healthy willingness to travel,' PVM analyst John Evans said in a note on Friday. Prompt tightness notwithstanding, the IEA boosted its forecast for supply growth this year, while trimming its outlook for growth in demand, implying a market in surplus. 'OPEC+ will quickly and significantly turn up the oil tap. There is a threat of significant oversupply. In the short term, however, oil prices remain supported,' Commerzbank analysts said in a note. Further adding support to the short-term outlook, Russian deputy prime minister Alexander Novak said on Friday that Russia will compensate for overproduction against its OPEC+ quota this year in August-September. One other sign of robust prompt oil demand was the prospect of Saudi Arabia shipping about 51 million barrels of crude oil in August to China, the biggest such shipment in over two years. Longer term, however, rival forecasting agency OPEC cut its forecasts for global oil demand in 2026 to 2029 because of slowing Chinese demand, the group said in its 2025 World Oil Outlook published on Thursday. Both benchmark futures contracts lost more than 2% on Thursday as investors worried about the impact of Trump's evolving tariff policy on global economic growth and oil demand. 'Prices have recouped some of this decline after President Trump said he plans to make a 'major' statement on Russia on Monday. This could leave the market nervous over the potential for further sanctions on Russia,' ING analysts wrote in a client note. Trump has expressed frustration with Russian President Vladimir Putin due to the lack of progress on peace with Ukraine and Russia's intensifying bombardment of Ukrainian cities. The European Commission is set to propose a floating Russian oil price cap this week as part of a new draft sanctions package, but Russia said it has 'good experience' of tackling and minimising such challenges.
Gulf Business
2 days ago
- Business
- Gulf Business
Oil prices steady as investors weigh duller market outlook and tariffs' impact
Image: Getty Images Oil prices were stable on Friday, as investors weighed a weaker market outlook for this year by the Brent crude futures were up 19 cents, or 0.28 per cent, at $68.83 a barrel as of 0807 GMT US West Texas Intermediate crude ticked up 25 cents, or 0.38 per cent, to $66.82 a barrel. Both contracts were little changed on the week, with Brent headed for a 0.8 per cent gain against last Friday's close, and WTI for a 0.3 per cent loss against last Thursday's close as markets were closed on July 4. The IEA on Friday boosted its forecast for supply growth this year, while also trimming its outlook for growth in demand. That notwithstanding, the IEA said peak summer refinery runs to meet travel and power-generation demand were keeping the market tight for now. Front-month September Brent contracts were trading at a $1.11 premium to October futures at 0807 GMT. 'Despite a market-wide expectation of an oil glut at the back end of this year, the current spate of drivers is lacking anything that might send prices back to the lows seen in April and May. Civilians, be they in the air on the road, are showing a healthy willingness to travel,' PVM analyst John Evans said. One other sign of robust prompt oil demand was the prospect of Saudi Arabia shipping about 51 million barrels of crude oil in August to China, the biggest such shipment in over two years. Longer term, however, rival forecasting agency OPEC cut its forecasts for global oil demand in 2026 to 2029 because of slowing Chinese demand, the group said in its 2025 World Oil Outlook published on Thursday. Both benchmark futures contracts lost more than 2 per cent on Thursday as investors worried about the impact of Trump's evolving tariff policy on global economic growth and oil demand. 'Prices have recouped some of this decline after President Trump said he plans to make a 'major' statement on Russia on Monday. This could leave the market nervous over the potential for further sanctions on Russia,' ING analysts wrote in a client note. Trump has expressed frustration with Russian President Vladimir Putin due to the lack of progress on peace with Ukraine and Russia's intensifying bombardment of Ukrainian cities. The European Commission is set to propose a floating Russian oil price cap this week as part of a new draft sanctions package.
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Business Standard
2 days ago
- Business
- Business Standard
Oil prices edge higher as markets watch supply risks and demand outlook
Oil prices edged up on Friday, as investors weighed a tight prompt market against a potential large surplus this year, according to the International Energy Agency, while US tariffs and possible further sanctions on Russia were also in focus. Brent crude futures were up 40 cents, or 0.58 per cent, at $69.04 a barrel as of 1027 GMT. US West Texas Intermediate crude ticked up 45 cents, or 0.68 per cent, to $67.02 a barrel. At those levels, Brent was headed for a 1.1 per cent gain on the week, while WTI was little changed against last week's close. The IEA on Friday said the global oil market may be tighter than it appears, with demand supported by peak summer refinery runs to meet travel and power-generation. Front-month September Brent contracts were trading at a $1.10 premium to October futures at 1027 GMT. "Civilians, be they in the air or on the road, are showing a healthy willingness to travel," PVM analyst John Evans said in a note on Friday. Prompt tightness notwithstanding, the IEA also boosted its forecast for supply growth this year, while trimming its outlook for growth in demand, implying a market in surplus. "OPEC+ will quickly and significantly turn up the oil tap. There is a threat of significant oversupply. In the short term, however, oil prices remain supported," Commerzbank analysts said in a note. One other sign of robust prompt oil demand was the prospect of Saudi Arabia shipping about 51 million barrels of crude oil in August to China, the biggest such shipment in over two years. Longer term, however, rival forecasting agency OPEC cut its forecasts for global oil demand in 2026 to 2029 because of slowing Chinese demand, the group said in its 2025 World Oil Outlook published on Thursday. Both benchmark futures contracts lost more than 2 per cent on Thursday as investors worried about the impact of Trump's evolving tariff policy on global economic growth and oil demand. "Prices have recouped some of this decline after President Trump said he plans to make a 'major' statement on Russia on Monday. This could leave the market nervous over the potential for further sanctions on Russia," ING analysts wrote in a client note. Trump has expressed frustration with Russian President Vladimir Putin due to the lack of progress on peace with Ukraine and Russia's intensifying bombardment of Ukrainian cities. The European Commission is set to propose a floating Russian oil price cap this week as part of a new draft sanctions package. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Qatar Tribune
3 days ago
- Business
- Qatar Tribune
Oil prices rise on Red Sea attacks, lower US output
Agencies New York Oil prices rose due to attacks in the Red Sea and lower US production, with Brent crude reaching $70.63 per barrel and WTI climbing to $68.84per barrel US President Trump announced a 50 percent tariff on copper imports, aiming to boost domestic production, while OPEC+ is preparing for a significant production boost in September Despite concerns about tariffs affecting oil demand, strong travel activity during the US Fourth of July holiday supported consumption, with a likely increase of 7.1 million barrels in US crude stockpiles Oil prices rose on Wednesday, maintaining their highest levels since June 23, supported by attacks on ships in the Red Sea, alongside concerns over sharp US tariffs on copper and expectations of reduced oil production in the United States. Brent crude futures rose by 48 cents, or 0.7 percent, to $70.63 per barrel by 08:55 GMT, while US West Texas Intermediate crude climbed by 51 cents, or 0.8 percent, to $68.84 per barrel. After months of calm in the Red Sea, attacks resumed last week in this vital global shipping route. Sources indicated that the Iran-backed Houthi militia in Yemen was behind the latest incidents. A rescue operation is currently underway for the crew of a cargo ship that sank in the Red Sea following an attack that killed at least four crew members. The Houthis have not yet claimed responsibility for the strike. Oil prices were also supported by a report from the US Energy Information Administration released Tuesday, which projected lower oil output in 2025 compared to earlier forecasts, citing slower activity among American producers due to falling prices. On Tuesday, US President Donald Trump said he would announce a 50 percent tariff on copper imports, aiming to boost domestic production of the metal — vital for electric vehicles, military equipment, power grids, and a range of consumer goods. This announcement came as Trump postponed some tariff deadlines to August 1, offering key trading partners hope that deals could be reached to ease the tariffs, though many companies remain uncertain about the future direction. Despite concerns that tariffs may curb oil demand, strong travel activity during the US Fourth of July holiday supported consumption, and data suggested a likely increase of 7.1 million barrels in US crude stockpiles. In a research note, oil brokerage PVM said: 'With attacks in the Red Sea and increased summer fuel consumption in the U.S., expectations of a future supply glut should take a back seat to short-term realities.' Official US crude inventory data from the Energy Information Administration is due at 14:30 GMT. Meanwhile, OPEC+ oil producers are preparing for another significant production boost in September as they continue to unwind voluntary supply cuts previously agreed upon by eight member states. The UAE is also transitioning to a higher production quota, according to five informed sources. This follows the group's Saturday announcement of a supply increase of 548,000 barrels per day for August. Suvro Sarkar, head of the energy sector team at DBS Bank, said: 'Oil prices have shown surprising resilience in the face of accelerating supply increases from OPEC+.' UAE Energy Minister Suhail Al Mazrouei said Wednesday that oil markets are absorbing OPEC+ supply hikes without stockpile build-ups, indicating that markets are 'thirsty' for more oil. 'You can see that even with the continuous increases over several months, we haven't seen significant stockpile accumulation — meaning the market genuinely needed these volumes,' Mazrouei added.
Business Recorder
4 days ago
- Business
- Business Recorder
Oil rises on Red Sea attacks, lower US production as Trump tariffs loom
LONDON: Oil prices rose on Wednesday, maintaining their highest levels since June 23, lifted by attacks on shipping in the Red Sea and a forecast for lower U.S. oil production while uncertainty over U.S. tariffs loomed in the background. Brent crude futures gained 10 cents, or 0.1%, to $70.25 a barrel by 1057 GMT. U.S. West Texas Intermediate crude was up 15 cents, or 0.2%, to $68.48 a barrel. After months of calm in the Red Sea, attacks in the major global shipping lane were renewed in the past week, which sources attribute to Yemen's Iran-allied Houthi militia. A mission was under way on Wednesday to rescue the crew from a cargo ship which sank in the Red Sea following an attack that killed at least four crew members. The Houthis have not claimed responsibility for the attack. Oil prices were also buoyed by an Energy Information Administration forecast on Tuesday that the U.S. will produce less oil in 2025 than previously expected, as declining oil prices have prompted U.S. producers to slow activity. On Tuesday, U.S. President Donald Trump said he would announce a 50% tariff on copper, aiming to boost U.S. production of a metal critical to electric vehicles, military hardware, the power grid and many consumer goods. The announcement came as Trump delayed a deadline for some tariffs to August 1, providing some hope to major trade partners that deals to ease duties could still be reached, though that left many companies still uncertain on the path forward. While there is concern that the tariffs could curb demand for oil, more immediately there was strong travel demand during the U.S. July 4 holiday weekend, while data also showed possible crude inventory builds in the U.S. of around 7.1 million barrels. With the Red Sea strikes and higher U.S. holiday fuel consumption during summer, 'the idea of ample future supply must give way to short-term considerations,' said a research note from oil broker PVM. Official inventories data from the U.S. Energy Information Administration is scheduled for release at 1430 GMT. OPEC+ oil producers were set for 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, five sources said. This followed a Saturday announcement from the group approving a 548,000 barrels per day supply increase for August. 'Oil prices have stayed surprisingly resilient in the face of accelerated OPEC+ supply additions,' said DBS Bank's energy sector team lead Suvro Sarkar. United Arab Emirates' Energy Minister Suhail al-Mazrouei said on Wednesday oil markets were absorbing OPEC+ production increases without building inventories, which means they are thirsty for more oil. 'You can see that even with the increases for several months we haven't seen a major buildup in inventories, which means the market needed those barrels,' he said.
