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Business Times
8 hours ago
- Business
- Business Times
Oil steadies after report of planned Opec+ August output hike
[HOUSTON] Oil prices edged up slightly on Friday (Jun 27), recovering from a midday drop into negative territory following a report that Opec+ was planning to hike production in August, but tumbled about 12 per cent in the week in their biggest drop since March 2023. Brent crude futures settled at US$67.77 a barrel, up four cents or 0.1 per cent. US West Texas Intermediate crude finished up 28 cents or 0.4 per cent at US$65.52 a barrel. Four delegates from Opec+, which includes allies of the Organization of the Petroleum Exporting Countries, said the group was set to boost production by 411,000 barrels per day in August, following a similar-size output increase already planned for July. 'The report about an Opec increase came out and prices cratered,' said Phil Flynn, senior market analyst with Price Futures Group, about the midday slide. Crude prices were already headed for a 12 per cent decline for the week following the ceasefire between Israel and Iran. During the 12-day war that started after Israel targeted Iran's nuclear facilities on Jun 13, Brent prices rose briefly to above US$80 a barrel before slumping to US$67 a barrel after US President Donald Trump announced an Iran-Israel ceasefire. 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 '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. Flynn said expectations of higher demand in the coming months gave crude a boost earlier on Friday. 'We're getting a demand premium on oil,' Flynn said. Prices had also been supported earlier in Friday's session by multiple oil inventory reports that showed strong draws in middle distillates, said Tamas Varga, a PVM Oil Associates analyst. US government data on Wednesday showed crude oil and fuel inventories fell last week, with refining activity and demand rising. Meanwhile, data on Thursday showed that independently held gasoil stocks at the Amsterdam-Rotterdam-Antwerp 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 Israel-Iran 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 of Iranian crude from Jun 1 to 20, according to ship-tracker Vortexa, a record high based on the firm's data. The US oil and natural gas rig count, an early indicator of future output, fell for a fourth straight month to its lowest since October 2021, Baker Hughes said. The number of oil rigs fell by six to 432 this week, also the lowest level since October 2021. REUTERS
Mint
12 hours ago
- Business
- Mint
Crude prices fall after report of OPEC planning August output boost
HOUSTON (Reuters) -Brent and U.S. West Texas Intermediate crude prices fell on Friday, reversing gains after a report that OPEC was planning to hike production in August following an increase planned for July. Brent crude futures were down 25 cents, or 0.37%, to $67.48 a barrel by 1615 GMT, while U.S. West Texas Intermediate crude fell 20 cents, or 0.31%, to $65.04. Four delegates from OPEC , which includes allies of the Organization of Petroleum Exporting Countries, said the group was set to boost production by 411,000 barrels per day (bpd) following a similar size output increase already planned for July. "The report about an OPEC increase came out and prices cratered," said Phil Flynn, senior market analyst with Price Futures Group. Crude prices were already headed for a 12% decline for the week following the cease-fire between Israel and Iran. 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. "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. He said the market was also keeping an eye on the July 6 meeting of the OPEC group of oil producers, adding that summer demand indicators were key as well. Flynn said expectations of higher demand in the coming months gave crude a boost earlier on Friday. "We're getting a demand premium on oil," Flynn said. Prices had also been supported earlier in Friday's session by multiple oil inventory reports that showed strong draws in 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. [EIA/S] Meanwhile, data on Thursday showed that 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 Israel-Iran 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 of Iranian crude from June 1-20, according to ship-tracker Vortexa, a record high based on the firm's data.
Mint
13 hours ago
- Business
- Mint
Crude prices fall after report of OPEC planning August output boost
HOUSTON (Reuters) -Brent and U.S. West Texas Intermediate crude prices fell on Friday, reversing gains after a report that OPEC was planning to hike production in August following an increase planned for July. Brent crude futures were down 25 cents, or 0.37%, to $67.48 a barrel by 1615 GMT, while U.S. West Texas Intermediate crude fell 20 cents, or 0.31%, to $65.04. Four delegates from OPEC , which includes allies of the Organization of Petroleum Exporting Countries, said the group was set to boost production by 411,000 barrels per day (bpd) following a similar size output increase already planned for July. "The report about an OPEC increase came out and prices cratered," said Phil Flynn, senior market analyst with Price Futures Group. Crude prices were already headed for a 12% decline for the week following the cease-fire between Israel and Iran. 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. "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. He said the market was also keeping an eye on the July 6 meeting of the OPEC group of oil producers, adding that summer demand indicators were key as well. Flynn said expectations of higher demand in the coming months gave crude a boost earlier on Friday. "We're getting a demand premium on oil," Flynn said. Prices had also been supported earlier in Friday's session by multiple oil inventory reports that showed strong draws in 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. [EIA/S] Meanwhile, data on Thursday showed that 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 Israel-Iran 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 of Iranian crude from June 1-20, according to ship-tracker Vortexa, a record high based on the firm's data. (Reporting by Erwin Seba in Houston, Siyi Liu in Singapore and Nicole Jao in New York; Editing by Mark Potter, David Evans and Emelia Sithole-Matarise)
The Star
17 hours ago
- Business
- The Star
Oil set to log steepest weekly decline in two years as war premium vanishes
SINGAPORE: Oil prices headed for their steepest weekly decline since March 2023 on Friday, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate. Brent crude futures rose 35 cents, or 0.52%, to $68.08 a barrel by 0429 GMT while U.S. West Texas Intermediate crude gained 40 cents, or 0.61%, to $65.64. That put both contracts on course for a weekly fall of about 12%. The benchmarks are now back at the levels they were at before Isreal began the conflict by firing missiles at Iranian military and nuclear targets on June 13. This week began with prices hitting a five-month high after the U.S. attacked Iranian nuclear sites at the weekend, before slumping to their lowest in over a week on Tuesday when U.S. President Donald Trump announced an Iran-Israel ceasefire. At present, traders and analysts said they could see no material impact from the crisis on oil flow. "Absent the threat of significant supply disruption, we still view oil as fundamentally oversupplied, with our 2025 balances indicating a roughly 2.1 million barrels per day (bpd) surplus," Macquarie analysts wrote in a research note on Thursday. The analysts forecast WTI to average around $67 a barrel this year and $60 next year, raising each forecast by $2 after factoring in a geopolitical risk premium. Small gains in prices later in the week came as U.S. government data showed crude oil and fuel inventories fell a week earlier, with refining activity and demand rising. "The market is starting to digest the fact that crude oil inventories are very tight all of a sudden," said Phil Flynn, senior analyst with the Price Futures Group. Also supporting prices was a Wall Street Journal report saying Trump planned to choose the next Federal Reserve chief earlier than usual. That fuelled fresh bets on U.S. interest rate cuts which would typically stimulate demand for oil. - Reuters
Yahoo
18 hours ago
- Business
- Yahoo
Oil Prices Set For Weekly Loss as War Premium Evaporates
Crude oil prices were set to end the week lower than they started it as Israel and Iran stopped bombing each other, alleviating fears of a supply disruption in the Middle East. At the time of writing, Brent crude was trading at $68 per barrel, with West Texas Intermediate at $65.55 per barrel. That's down from over $77 for Brent crude and $73 per barrel for WTI at the end of last week. Still, both benchmarks inched higher on Thursday this week, after the U.S. Energy Information Administration reported a draw in both crude oil and fuel inventories, and signs of strengthening demand and a ramp-up in refining activity. 'The market is starting to digest the fact that crude oil inventories are very tight all of a sudden,' Phil Flynn, an analyst from Price Futures Group, told Reuters. ING analysts, meanwhile, noted that now that the risk of a Middle Eastern supply disruption was off the table, focus would return to tariffs. The U.S. is due to finalise trade agreements with 10 countries after reaching a deal with China earlier in the month. If the other ten deals are successful, which will likely be the case, the tariff threat will also be removed from the oil market, which may provide a boost for demand and, consequently, prices. A cheaper U.S. dollar should also help. The greenback slumped this week on reports President Trump was going to make his Fed chair pick early. Besides the tariff business, ING also noted OPEC+'s next meeting, due to be held on July 6, which the bank's analysts expect will result in yet another 411,000-bpd production boost. 'These supply hikes should ensure that the oil market moves into a large surplus towards the end of the year. This assumes we don't see a re-escalation in the Middle East, which would lead to supply losses,' Warren Patterson and Ewa Manthey wrote. By Irina Slav for More Top Reads From this article on
