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Zawya
a day ago
- Business
- Zawya
Oil set for steepest weekly decline in two years as risk subsides
Oil prices rose on Friday though were set for their steepest weekly decline since March 2023, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate. Brent crude futures rose 50 cents, or 0.7%, to $68.23 a barrel by 1036 GMT while U.S. West Texas Intermediate crude gained 49 cents, or nearly 0.8%, to $65.73. During the 12-day war that started after Israel targeted Iran's nuclear facilities on June 13, Brent prices rose briefly to above $80 a barrel before slumping to $67 a barrel after U.S. President Donald Trump announced an Iran-Israel ceasefire. That put both contracts on course for a weekly fall of about 12%. "The market has almost entirely shrugged off the geopolitical risk premiums from almost a week ago as we return to a fundamentals-driven market," said Rystad analyst Janiv Shah. "The market also has to keep eyes on the OPEC+ meeting – we do expect room for one more month of an accelerated unwinding basis balances and structure, but the key question is how strong the summer demand indicators are showing up to be." The OPEC+ members will meet on July 6 to decide on August production levels. Prices were also being supported by multiple oil inventory reports that showed strong draws in the middle distillates, said Tamas Varga, a PVM Oil Associates analyst. Data from the U.S. Energy Information Administration on Wednesday showed crude oil and fuel inventories fell a week earlier, with refining activity and demand rising. Meanwhile, data on Thursday showed that the independently held gasoil stocks at the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell to their lowest in over a year, while Singapore's middle distillates inventories declined as net exports climbed week on week. Additionally, China's Iranian oil imports surged in June as shipments accelerated before the conflict and demand from independent refineries improved, analysts said. China is the world's top oil importer and biggest buyer of Iranian crude. It bought more than 1.8 million barrels per day (bpd) of Iranian crude from June 1-20, according to ship-tracker Vortexa, a record high based on the firm's data. (Reporting by Siyi Liu in Singapore and Nicole Jao in New York; Editing by Jamie Freed, Elaine Hardcastle and David Evans)
Business Recorder
a day ago
- Business
- Business Recorder
Oil set for steepest weekly decline in two years as risk subsides
LONDON: Oil prices rose on Friday though were set for their steepest weekly decline since March 2023, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate. Brent crude futures rose 50 cents, or 0.7%, to $68.23 a barrel by 1036 GMT while US West Texas Intermediate crude gained 49 cents, or nearly 0.8%, to $65.73. During the 12-day war that started after Israel targeted Iran's nuclear facilities on June 13, Brent prices rose briefly to above $80 a barrel before slumping to $67 a barrel after US President Donald Trump announced an Iran-Israel ceasefire. That put both contracts on course for a weekly fall of about 12%. 'The market has almost entirely shrugged off the geopolitical risk premiums from almost a week ago as we return to a fundamentals-driven market,' said Rystad analyst Janiv Shah. Oil climbs as investors shift focus to demand signals 'The market also has to keep eyes on the OPEC+ meeting – we do expect room for one more month of an accelerated unwinding basis balances and structure, but the key question is how strong the summer demand indicators are showing up to be.' The OPEC+ members will meet on July 6 to decide on August production levels. Prices were also being supported by multiple oil inventory reports that showed strong draws in the middle distillates, said Tamas Varga, a PVM Oil Associates analyst. Data from the US Energy Information Administration on Wednesday showed crude oil and fuel inventories fell a week earlier, with refining activity and demand rising. Meanwhile, data on Thursday showed that the independently held gasoil stocks at the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell to their lowest in over a year, while Singapore's middle distillates inventories declined as net exports climbed week on week. Additionally, China's Iranian oil imports surged in June as shipments accelerated before the conflict and demand from independent refineries improved, analysts said. China is the world's top oil importer and biggest buyer of Iranian crude. It bought more than 1.8 million barrels per day (bpd) of Iranian crude from June 1-20, according to ship-tracker Vortexa, a record high based on the firm's data.
Asharq Al-Awsat
a day ago
- Business
- Asharq Al-Awsat
Oil Set for Steepest Weekly Decline in Two Years as Risk Subsides
Oil prices rose on Friday though were set for their steepest weekly decline since March 2023, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate. Brent crude futures rose 50 cents, or 0.7%, to $68.23 a barrel by 1036 GMT while US West Texas Intermediate crude gained 49 cents, or nearly 0.8%, to $65.73. During the 12-day war that started after Israel targeted Iran's nuclear facilities on June 13, Brent prices rose briefly to above $80 a barrel before slumping to $67 a barrel after US President Donald Trump announced an Iran-Israel ceasefire. That put both contracts on course for a weekly fall of about 12%. "The market has almost entirely shrugged off the geopolitical risk premiums from almost a week ago as we return to a fundamentals-driven market," said Rystad analyst Janiv Shah. "The market also has to keep eyes on the OPEC+ meeting – we do expect room for one more month of an accelerated unwinding basis balances and structure, but the key question is how strong the summer demand indicators are showing up to be." The OPEC+ members will meet on July 6 to decide on August production levels. Prices were also being supported by multiple oil inventory reports that showed strong draws in the middle distillates, said Tamas Varga, a PVM Oil Associates analyst. Data from the US Energy Information Administration on Wednesday showed crude oil and fuel inventories fell a week earlier, with refining activity and demand rising. Meanwhile, data on Thursday showed that the independently held gasoil stocks at the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell to their lowest in over a year, while Singapore's middle distillates inventories declined as net exports climbed week on week. Additionally, China's Iranian oil imports surged in June as shipments accelerated before the conflict and demand from independent refineries improved, analysts said. China is the world's top oil importer and biggest buyer of Iranian crude. It bought more than 1.8 million barrels per day (bpd) of Iranian crude from June 1-20, according to ship-tracker Vortexa, a record high based on the firm's data.
Time of India
4 days ago
- Business
- Time of India
UAE fuel prices July 2025: Will falling global oil cut petrol and diesel rates?
Falling Brent crude prices near $69 a barrel and easing Middle East tensions are raising expectations of lower petrol and diesel rates in the UAE for July 2025/ (Representational Image) The United Arab Emirates is expected to announce retail fuel prices for July 2025 by June 30, as part of its monthly pricing update. Since deregulating fuel prices in 2015, the UAE has tied domestic petrol and diesel costs to international oil market trends. These monthly revisions are closely watched by residents, as they directly affect commuting costs and household budgets. In June 2025, prices held steady compared to May, with a slight drop in diesel: Super 98 petrol: Dh2.58 per litre Special 95 petrol: Dh2.47 per litre E-Plus 91 petrol: Dh2.39 per litre Diesel: Dh2.45 per litre (down from Dh2.52 in May) The highest fuel prices this year were recorded in February, while April marked the lowest. Global oil prices have declined sharply, prompting speculation that UAE fuel prices could follow suit in July. Brent crude, the international benchmark, is currently trading near $69 per barrel, down more than 7% this week alone. This drop comes despite a recent flare-up between Israel and Iran that briefly pushed prices higher. However, both nations appear to be de-escalating the situation. The critical Strait of Hormuz, through which a significant portion of global oil supply passes, remains open and unaffected. Tamas Varga, an analyst at PVM Oil Associates, noted: 'The geopolitical risk premium built up since the first Israeli strike on Iran has entirely vanished.' Analysts say that markets are now shifting focus from geopolitical risks to fundamentals like supply and demand. There is a growing expectation of an oil surplus in the second half of 2025, driven by softening global demand and increasing production. OPEC+, the oil-producing alliance that includes the UAE and Saudi Arabia, is scheduled to meet on July 6. According to Robert Rennie of Westpac, the group may agree to increase production by another 400,000 barrels per day starting in August. Rennie added: 'As global production rises and demand wanes, we will see prices probing the $60–$65 range.' Such dynamics may reinforce the current downward pressure on global oil prices. If the global oil trend continues, UAE motorists may see lower fuel prices in July. While local petrol rates also reflect refining and distribution costs, the country's pricing system remains strongly tied to Brent crude movements. That said, any potential relief at the pump could still be influenced by: The outcome of the July 6 OPEC+ meeting The stability of the Israel-Iran situation Broader global economic demand trends The official July prices will be announced by Emarat, the UAE's federal petroleum company, on the final day of June. Until then, residents are advised to stay informed as international developments continue to influence the outlook for local fuel costs.
International Business Times
21-06-2025
- Business
- International Business Times
Wall Street Shows Mixed Signals as S&P 500 Down 0.21%, Dow Gains 38 Points as Middle East Tensions Escalate
U.S. stock markets finished Friday with mixed results as traders continued to grapple with new geopolitical uncertainty in the Middle East and further cycles in oil and currency markets. The Dow Jones Industrial Average added 38.47 points, or 0.1%, to end at 42,210.13. The S&P 500, on the other hand, slipped 0.21%, while the Nasdaq Composite sank more deeply by 0.49%. Investor sentiment took on a cautious tone as President Donald Trump postponed taking military action in the wake of recent flare-ups in the Israel-Iran conflict. Markets began the day on a positive note, but worries about what could unfold over the weekend contributed to choppy trades and late-session declines. Energy prices also signaled the market's unease. Brent crude dropped 2.3 percent to $77.01 a barrel, but it was still up 3.6 percent for the week. U.S. crude futures settled at $74.93, down 0.28%, but still up 2.7% for the week, despite a holiday-thinned session on Thursday. "People are holding back from major moves ahead of the weekend. There's still a lot of risk tied to how the situation unfolds," said Rick Meckler of Cherry Lane Investments. Diplomatic Moves and Geopolitical Risks: The United States forged ahead with targeted sanctions on enterprises tied to Iran's defense industry, a diplomatic strategy from the White House. But analysts warn that with Israel and Iran continuing to trade hostilities, any miscalculation would see the crisis ratchet higher and put vital oil infrastructure at risk. "There's always a chance of an unintended spark in these kinds of conflicts," said John Evans, an analyst at PVM Oil Associates. European officials called on Tehran to resume negotiations over its nuclear ambitions after a high-level meeting in Geneva ended without progress. European stock markets closed slightly higher, buoyed by optimism from earlier Asian trading sessions. The MSCI World Index was down slightly by 0.01%, while gains in Hong Kong and Seoul helped balance out losses in the other Asian markets. Fed Talk Spotlights Policy The Gap: Federal Reserve officials spoke publicly for the first time since comments by the Fed's chair, Jerome H. Powell, on Wednesday, indicating that the central bank is likely to cut interest rates this year. But he cautioned that inflation, particularly from Trump's trade tariffs, is a risk. A divide among policymakers is also now visible. Governor Christopher Waller insisted to open the door to a rate cut as soon as the next meeting, and Richmond Fed President Tom Barkin countered that there's no rush to move. Powell, for his part, warned against putting too much stock in forecasts in such a dynamic environment. Waller's dovish take sent bond markets into motion. The yield on the benchmark 10-year Treasuries fell 2 basis points to 4.375%. Strong safe-haven demand, which has been soaring in recent weeks because of global tensions, was another factor contributing to the fall. Currency and Commodity Price Movements The dollar was stronger, reaching a three-week high against the yen. A gauge of the dollar against major currencies inched 0.03% higher on the day and 0.6% for the week. The euro was 0.3% firmer at $1.1528. Gold prices were down 0.13% at $3,365.91, set for a weekly decline despite some strength earlier in the week as a safe haven asset.
