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Qatar Tribune
14 hours 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
a day 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.
Economic Times
5 days ago
- Business
- Economic Times
Oil falls slightly ahead of expected OPEC+ output increase
Oil futures slipped slightly in thin holiday trading on Friday, as the market looked ahead to this weekend's OPEC+ meeting and the likelihood that member countries will decide to raise output. ADVERTISEMENT Brent crude futures settled down 50 cents, or 0.7%, at $68.30 a barrel while U.S. West Texas Intermediate crude was down 50 cents, or 0.75%, at $66.50 just before 1300 EDT (1700 GMT). Trade was sparse due to the U.S. Independence Day holiday. Brent settled about 0.8% higher than last Friday's close and WTI was around 1.5% higher. Eight OPEC+ countries are likely to make another oil output increase for August at a meeting on Saturday in their push to boost market share. The meeting was moved forward a day to Saturday. "If the group decides to increase its output by another 411,000 barrels per day (bpd) in August, as expected, for the fourth successive month, oil balance estimates for the second half of the year will be reassessed and will suggest accelerated swelling in global oil reserves," said PVM analyst Tamas Varga. "There seems to be some profit-taking on concerns that OPEC will raise production by more than expected," said Phil Flynn, senior analyst with the Price Futures added that investors seem to be in wait-and-see mode, getting ready to react to OPEC's move while also watching for implications of U.S. President Donald Trump's massive package of tax and spending cuts, which was set to be signed into law at a ceremony at the White House on Friday. Crude prices also came under pressure from a report on U.S. news website Axios, which said the United States was planning to resume nuclear talks with Iran next week, while Iranian foreign minister Abbas Araqchi said Tehran remained committed to the nuclear Non-Proliferation Treaty. ADVERTISEMENT Meanwhile, uncertainty over U.S. tariff policy was back in the spotlight as the end of a 90-day pause on higher levies approaches. European Union negotiators have failed so far to achieve a breakthrough in trade negotiations with the Trump administration and may now seek to extend the status quo to avoid tariff hikes, six EU diplomats briefed on the talks said on Friday. Separately, Barclays said it had raised its Brent oil price forecast by $6 to $72 a barrel for 2025 and by $10 to $70 a barrel for 2026 on an improved demand outlook. (You can now subscribe to our ETMarkets WhatsApp channel)
Business Times
6 days ago
- Business
- Business Times
Oil falls slightly ahead of expected Opec+ output increase
[CALGARY] Oil futures slipped slightly in thin holiday trading on Friday (Jul 4), as the market looked ahead to this weekend's Opec+ meeting and the likelihood that member countries will decide to raise output. Brent crude futures settled down 50 US cents, or 0.7 per cent, at US$68.30 a barrel while US West Texas Intermediate (WTI) crude was down 50 US cents, or 0.75 per cent, at US$66.50 just before 1300 EDT (1700 GMT). Trade was sparse due to the US Independence Day holiday. Brent settled about 0.8 per cent higher than last Friday's close and WTI was around 1.5 per cent higher. Eight Opec+ countries are likely to make another oil output increase for August at a meeting on Saturday in their push to boost market share. The meeting was moved forward a day to Saturday. 'If the group decides to increase its output by another 411,000 barrels per day (bpd) in August, as expected, for the fourth successive month, oil balance estimates for the second half of the year will be reassessed and will suggest accelerated swelling in global oil reserves,' said PVM analyst Tamas Varga. 'There seems to be some profit-taking on concerns that Opec will raise production by more than expected,' said Phil Flynn, senior analyst with the Price Futures group. He added that investors seem to be in wait-and-see mode, getting ready to react to Opec's move while also watching for implications of US President Donald Trump's massive package of tax and spending cuts, which was set to be signed into law at a ceremony at the White House on Friday. Crude prices also came under pressure from a report on US news website Axios, which said the United States was planning to resume nuclear talks with Iran next week, while Iranian foreign minister Abbas Araqchi said Tehran remained committed to the nuclear Non-Proliferation Treaty. Meanwhile, uncertainty over US tariff policy was back in the spotlight as the end of a 90-day pause on higher levies approaches. European Union negotiators have failed so far to achieve a breakthrough in trade negotiations with the Trump administration and may now seek to extend the status quo to avoid tariff hikes, six EU diplomats briefed on the talks said on Friday. Separately, Barclays said it had raised its Brent oil price forecast by US$6 to US$72 a barrel for 2025 and by US$10 to US$70 a barrel for 2026 on an improved demand outlook. REUTERS
CNA
6 days ago
- Business
- CNA
Oil falls slightly ahead of expected OPEC+ output increase
CALGARY :Oil futures slipped slightly in thin holiday trading on Friday, as the market looked ahead to this weekend's OPEC+ meeting and the likelihood that member countries will decide to raise output. Brent crude futures settled down 50 cents, or 0.7 per cent, at $68.30 a barrel while U.S. West Texas Intermediate crude was down 50 cents, or 0.75 per cent, at $66.50 just before 1300 EDT (1700 GMT). Trade was sparse due to the U.S. Independence Day holiday. Brent settled about 0.8 per cent higher than last Friday's close and WTI was around 1.5 per cent higher. Eight OPEC+ countries are likely to make another oil output increase for August at a meeting on Saturday in their push to boost market share. The meeting was moved forward a day to Saturday. "If the group decides to increase its output by another 411,000 barrels per day (bpd) in August, as expected, for the fourth successive month, oil balance estimates for the second half of the year will be reassessed and will suggest accelerated swelling in global oil reserves," said PVM analyst Tamas Varga. "There seems to be some profit-taking on concerns that OPEC will raise production by more than expected," said Phil Flynn, senior analyst with the Price Futures group. He added that investors seem to be in wait-and-see mode, getting ready to react to OPEC's move while also watching for implications of U.S. President Donald Trump's massive package of tax and spending cuts, which was set to be signed into law at a ceremony at the White House on Friday. Crude prices also came under pressure from a report on U.S. news website Axios, which said the United States was planning to resume nuclear talks with Iran next week, while Iranian foreign minister Abbas Araqchi said Tehran remained committed to the nuclear Non-Proliferation Treaty. Meanwhile, uncertainty over U.S. tariff policy was back in the spotlight as the end of a 90-day pause on higher levies approaches. European Union negotiators have failed so far to achieve a breakthrough in trade negotiations with the Trump administration and may now seek to extend the status quo to avoid tariff hikes, six EU diplomats briefed on the talks said on Friday.
