Oil climbs on EU trade deal, potential US-China tariff truce extension
Brent crude futures were up 24 cents, or 0.34 per cent, to US$70.28 a barrel by 0000 GMT, while US West Texas Intermediate crude was at US$66.93 a barrel, up 22 cents, or 0.33 per cent.
Both contracts settled more than two per cent higher in the previous session, and Brent touched its highest level since July 18 on Monday.
The trade agreement between the United States and the European Union, while imposing a 15 per cent import tariff on most EU goods, sidestepped a full-blown trade war between the two major allies that would have rippled across nearly a third of global trade and dimmed the outlook for fuel demand.
Oil prices were also supported by news of a possible extension of the trade truce between the US and China, with top economic officials from both countries having met in Stockholm on Monday for more than five hours of talks. The discussions are expected to resume on Tuesday.
Meanwhile, Trump set a new deadline on Monday of "10 or 12 days" for Russia to make progress toward ending the war in Ukraine or face sanctions. Trump has threatened sanctions on both Russia and buyers of its exports unless progress is made.
"Trump's comments reignited fears that Russia's oil flows would be impacted," ANZ senior commodity strategist Daniel Hynes wrote in a note.
"This also comes on the back of the latest sanctions package by the EU against Russia, including a lower price cap on the country's crude and the import of refined products made from Moscow's oil in other countries," Hynes added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
2 minutes ago
- The Sun
Undocumented migrants in LA fear Trump raids, stay hidden
LOS ANGELES: For over a month, Alberto has barely left the small room he rents in a backyard, terrified of encountering masked police conducting immigration raids across Los Angeles. 'It's terrible,' said the 60-year-old Salvadoran, who lacks legal status. 'It's a confinement I wouldn't wish upon anyone.' To survive, Alberto relies on food deliveries from a local aid group twice a week. 'It helps me a lot, because if I don't have this... how will I eat?' he said, having stopped working at a car wash for weeks. The recent surge in Immigration and Customs Enforcement (ICE) raids has led to mass arrests at workplaces and public spaces, sparking protests and fear among the city's undocumented population. Videos circulating online show masked, armed officers detaining individuals accused of being criminals. Critics argue that many arrested were simply working low-wage jobs unwanted by Americans. The raids, described as brutal and indiscriminate, have triggered demonstrations, some turning violent. Alberto went into hiding after friends were arrested and deported in a car wash raid. Despite needing medical care for pre-diabetes, he hesitates to leave home. 'I'm very stressed. I have headaches and body pain because I was used to working,' he admitted. Trump's aggressive immigration policies, a key re-election pledge, have shocked Los Angeles, home to hundreds of thousands of undocumented workers. Public transport use dropped 13.5% in June as migrants avoid movement. 'Certain neighborhoods look like ghost towns,' said Norma Fajardo of the CLEAN Carwash Worker Center, which now delivers food to those too afraid to leave home. ICE arrested over 2,200 people in Los Angeles in June, with 60% having no criminal record. With Congress approving $30 billion to expand ICE operations, including hiring 10,000 more agents, Fajardo expects no relief. 'This seems like the new normal,' she said. Marisol, a Honduran woman, has confined herself and 12 family members to their home for weeks. 'We thank God for the food deliveries,' she said, too scared to attend church. Her family, who fled gang violence in Honduras, now questions staying in the U.S. 'My sons say they'd prefer to go to Europe,' she revealed. - AFP
Focus Malaysia
2 minutes ago
- Focus Malaysia
Step aside, Trump; let PMX take home the Nobel Peace Prize for keeping ASEAN intact
CAMBODIA and Thailand have agreed to stop their border war but who was responsible for bringing the quarrelling neighbours to the negotiating table: the US or Malaysia? It appears that US President Donald Trump is stealing the thunder from Malaysian Prime Minister Datuk Seri Anwar Ibrahim who was directly involved in hammering out a peace deal. Anwar mediated the talks between the warring parties in Putrajaya in his capacity as ASEAN chairman and it must be said that he passed his first test at diplomacy. But the US – being a superpower – will not allow a minnow like Malaysia to overshadow its dominance on the world stage. Trump the political maverick never misses a chance to grab the limelight on any global issues and is not shy to take credit for work largely done by others. Now he proclaims himself the 'president of peace' for halting hostilities between these two Asean members and 'saving thousands of lives'. 'Weaponising tariffs' Trump makes it looks as if Cambodia and Thailand are on the verge of a full-scale war and only US intervention as peace-broker can avert such disaster. By his reckoning, only the US has the clout, power and prestige to bend nations to its will and dictates. All other nations can just be bystanders and watch how Washington waxes its muscles. Malaysia, however, is not a bystander but an active player in the peace talks. The ceasefire deal was sealed in the Prime Minister's Office and not in Trump's Oval Office. Acting Thai Prime Minister Phumtham Wechayachai and Cambodian Prime Minister Hun Manet didn't fly over to Washington but merely crossed over the border to Malaysia to meet Anwar and bury the hatchet at least for now. Nevertheless, the US was also the co-organiser of the talk with China acting as an observer. US Ambassador to Malaysia Edgard Kagan and Chinese Ambassador Ouyang Yujing were present in Putrajaya to witness the ASEAN leaders clasping their hands on the agreement. Trump did talk to the Thai and Cambodian leaders over the phone to goad them into ending the conflict. But one suspects that the tariff factor also played a big role in persuading the combatants to choose the path of peace. With Thailand and Cambodia each facing a stiff tariff of 36% on their goods entering the US, the cessation of hostilities would perhaps soften the US stance and might even result in a lower tariff for both countries as a reward for peace. Trump might have wielded the tariff weapon to get Bangkok and Phnom Penh to hasten to the table or they might face the Oval Office treatment by remote control with Trump berating them for ignoring his call for peace and perhaps threatening them with trade sanctions. Why is Russia-Ukraine still at war? The dispute between Thailand and Cambodia is in reality a 'family affair' and could be settled in the spirit of ASEAN friendliness and neighbourliness. There is no need for Trump to poke his nose in and act as the 'policeman' of the world. If there is one corner of the globe that urgently needs Trump's undivided attention, it's in Ukraine. So far, Trump has failed miserably to get Ukrainian President Volodymyr Zelensky and Russian President Vladimir Putin to the negotiating table despite his vaunted boast of settling the war promptly upon regaining the White House. The Thailand-Cambodian border clashes cannot compare with the horrors on the Ukranian battlefields. The toll of the dead is still mounting with more than one million Russians and over 100,000 Ukraine soldiers killed so far. Unlike the ASEAN conflict, this vicious war has the potential of morphing into a Third World War with unimaginable consequences given that nuclear weapons of mass destruction could be used by Russia. So, President Trump, let ASEAN take care of its own business and you see to it that Putin doesn't start another world war that can wipe out even your country from the map of the world. Your press secretary Karoline Leavitt praised you sky-high for ending the Thailand-Cambodia conflict – a feat she claimed should earn you the Nobel Peace Prize. No, Sir, you don't deserve that coveted prize for just ending an ASEAN border conflict while you are unable to extinguish the conflagration engulfing Eastern Europe. So, Mr President, step aside and let Anwar Ibrahim, the Malaysian Prime Minister, take home the Nobel Peace Prize for keeping ASEAN intact, united and safe. – July 31, 2025 Phlip Rodrigues is a retired journalist. The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia. Main image credit: Anwar Ibrahim. Facebook
Malay Mail
2 minutes ago
- Malay Mail
Trump's tariff countdown: Global trade partners scramble as deadline nears
WASHINGTON, July 31 — Time is running short for governments to strike deals with Washington to avert tariff hikes that Donald Trump has vowed against dozens of economies — and the US president continues to expand his trade wars. As the clock ticked down on a Friday deadline for higher levies to take effect on goods from various trading partners, Trump announced a trade deal with South Korea and separate duties on Brazilian and Indian imports. He also signed an order Wednesday to impose previously-threatened 50 per cent tariffs on certain copper products and end a tariff exemption for low-value shipments from abroad. The tariff hikes due Friday were initially announced in April as part of a package where Trump slapped a 10 per cent levy on goods from almost all trading partners — citing unfair trade practices. This rate was set to rise to varying levels for dozens of economies like the European Union, Japan and others, but Washington twice postponed their implementation as financial markets gyrated. So far, Britain, Vietnam, Japan, Indonesia, the Philippines, the EU and South Korea have reached initial deals with Washington to secure less punishing conditions. While the United States and China earlier slapped escalating tariffs on each other's products, both sides are working to further a truce maintaining duties at lower levels. 'Big day' But Trump has been pushing ahead in his efforts to reshape global trade. The US leader insisted Wednesday that the August 1 deadline 'will not be extended' any further. In a Truth Social post, he vowed that this would be 'a big day for America.' Although Trump has promised a surge in government revenues from his duties, economists warn that higher tariffs can fuel an uptick in inflation and weigh on economic growth. This could change consumption patterns. Already, consumers face an overall average effective tariff rate that is the highest since the 1930s, according to a recent analysis by The Budget Lab at Yale University. The effect on consumer prices has been limited so far. But analysts cautioned this could become more pronounced as businesses run down on existing inventory and pass on more costs to buyers. Tariff blitz, delays Among Trump's latest announcements were a 25 per cent duty on Indian goods to begin Friday — slightly lower than previously threatened — after talks between Washington and New Delhi failed to bring about a trade pact. India would face an unspecified 'penalty' over purchases of Russian weapons and energy as well, Trump said. He also unveiled a 50 per cent tariff on Brazilian goods, saying its government's policies and actions threaten US national security. But he delayed its implementation from Friday to August 6 and crucially exempted many products from the prohibitive levy, including orange juice, civil aircraft, iron ore and some energy products. Trump inked an order too for a 50 per cent tariff to kick in Friday on goods like copper pipes and wiring, making good on an earlier vow to impose these duties. But the levy, which came after a Commerce Department probe on national security grounds, was less sweeping than anticipated. It left out products like copper ores, concentrates and cathodes, bringing some relief to industry. Meanwhile, Seoul landed a deal with Trump in which South Korean products would face a 15 per cent tariff when entering the United States — significantly below a 25 per cent level threatened. — AFP
