OPEC+ panel stresses need for full compliance with output limits
Ministers from the Joint Ministerial Monitoring Committee, which includes top energy ministers from the Organization of the Petroleum Exporting Countries and allies led by Russia, convened online for brief talks.
The JMMC meets every two months and has the power to call for a full meeting of OPEC+ to address market developments if deemed necessary.
"The committee reiterated the critical importance of achieving full conformity and compensation," OPEC said in a statement after the meeting. Compensation cuts are those that some countries, such as Iraq and Kazakhstan, are being asked to carry out to make up for earlier overproduction.
The JMMC asked countries that are not fully compliant to submit updated compensation plans by August 18.
OPEC, in a post on X late on Friday, said the committee does not hold decision-making authority over production levels, and "its role is limited to monitoring conformity with production adjustments and reviewing overall market conditions".
OPEC+, which pumps about half of the world's oil, has been curtailing production for several years to support the market. But it reversed course this year to regain market share, and as U.S. President Donald Trump demanded OPEC pump more to help keep a lid on gasoline prices.
Eight members began to raise output in April and since then have accelerated the hikes. Their most recent decision calls for an oil output increase of 548,000 barrels per day in August.
The eight countries hold a separate meeting on August 3 and remain likely to agree to a further 548,000 bpd increase for September, three OPEC+ sources said last week, as reported by Reuters earlier this month.
This would mean that, by September, OPEC+ would have unwound its most recent production cut of 2.2 million bpd, and the United Arab Emirates would have delivered a 300,000 bpd quota increase ahead of schedule.
Oil prices have remained supported despite the OPEC+ increases thanks to summer demand and the fact that some members have not raised production as much as the headline quota hikes have called for. Brent crude was trading above $70 a barrel on Monday.
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The Independent
12 minutes ago
- The Independent
The Latest: Trump extends Mexico trade talks for 90 days, while Aug. 1 deadline nears for others
President Donald Trump said Thursday that there would be a 90-day negotiating period with Mexico after a call with that country's leader, Claudia Sheinbaum, as the 25% tariff rates stay in place. Mexico had faced the prospect of a 30% tariff from Trump set to start Friday, something the country now gets to stave off for the next three months. In an announcement on Truth Social, Trump said his phone conversation with Sheinbaum was 'very successful in that, more and more, we are getting to know and understand each other.' He also said that autos would face 25% tariffs — but copper, aluminum and steel would still be taxed at 50%. Meanwhile, thorny negotiations for most other trading partners remain up in the air. Trump has threatened to impose a broad set of steeper import taxes on goods coming from countries around the world starting Friday. And while a handful of trade deals have trickled in, many details remain hazy — and the vast majority of nations are continuing to face uncertainty ahead of the coming deadline. Many businesses and manufacturers around the world are also bracing for more price hikes. Here's the Latest: Sheinbaum applauded yet another delay in threatened tariffs from the Trump administration after speaking with Trump Thursday morning. The Mexican president said that she and Trump had continued to 'negotiate and work as equals.' 'It was a good agreement, because we simply stay like we are with nothing additional,' Sheinbaum said, when discussing the 90-day extension at her daily news briefing. Until then any good covered under the USMCA trade pact would remain tariff free, she added. Gabriela Siller, economic analysis director for Banco Base in Mexico, said the delay in the new tariffs was 'positive,' but means that sectors already dealing with import taxes will continue to suffer. Moody's Analytics Director Alfredo Coutiño said Mexico doesn't need postponements, but rather 'resolution of the problem.' 'With this decision the country wins time, but it prolongs the agony and uncertainty,' he said. ▶ Read more about the U.S. and Mexico's new 90-day negotiation period. Chile officials express relief over Trump's decision to exclude refined copper from 50% tariffs Authorities in Chile, the world's largest copper producer, breathed a collective sigh of relief Thursday at Trump's decision to exclude refined copper from his coming 50% tariffs on copper imports. Chile has a trade agreement with the U.S. and last year accounted for 65% of American imports of refined copper, according to the U.S, Geological Survey. Its copper exports totaled over $50.1 million, government data shows. In a joint statement, three Chilean Cabinet members said it was 'good news' that Trump's tariff would not apply to copper cathodes, Chile's main export. 'This result reflects the hard work that Chile has done in this area,' said Foreign Minister Alberto van Klaveren, 'both in our country and through our embassy in Washington.' Switzerland and Norway are among countries uncertain about what Aug. 1 will bring Earlier this week, Norwegian Finance Minister Jens Stoltenberg said it was 'completely uncertain' whether a U.S.-Norway deal would happen by Friday's deadline. 'We must be prepared for the tariffs into the U.S. to increase on Aug. 1,' Stoltenberg told public broadcaster NRK. 'But we are working and in close dialogue with the Americans to see if it is still possible to prevent it.' Trump's 'Liberation Day' tariffs announced in April initially set a relatively low — by comparison to some other countries — rate of 15% on Norwegian goods. That's the same rate that the European Union agreed to in a hard-wrought deal announced Sunday. Meanwhile, Switzerland is facing a much higher rate — 31% — which has suspended until Friday. It's uncertain whether that rate will return afterward. Swiss President Karin Keller-Sutter recalled how she met with Trump at the White House just a week after the tariffs were announced, and made her case for Switzerland against them. 'Now it's in the hands of the United States, in the hands of the American president – and it's up to him to decide,' she told public broadcaster RTS this week in an interview ahead of Switzerland's National Day, which is also Aug. 1. Brazil says 35% of its exports to the US will be affected by Trump's 50% tariff rate Brazil's Vice President Geraldo Alckmin said Thursday that 35% of the country's exports to the United States will be affected by Trump's new 50% tariffs on Brazilian goods. Trump signed an executive order Wednesday to impose the tariffs, citing Brazil's policies and the criminal prosecution of former President Jair Bolsonaro as an 'economic emergency' under a 1977 law. The order exempts certain items, including civil aircraft and parts, aluminum, tin, wood pulp, energy products and fertilizers. Alckmin said those items make up 45% of Brazilian exports to the U.S., while another 20% — such as steel — were already subject to higher tariffs. Finance Minister Fernando Haddad said Trump's order marks the start of talks, not the end of the process. He added that U.S. officials appeared receptive to Brazil's concerns. 'There is a lot of injustice in the measures announced yesterday,' Haddad told reporters, noting his office is scheduling a second meeting with Treasury Secretary Scott Bessent. ▶ Read more about Trump's coming 50% tariffs on Brazil. Ferrari awaits clarification on EU tariffs before changing prices Luxury sportscar maker Ferrari said Thursday that it was awaiting confirmation of tariffs on European imports to the U.S. before scaling back a price surcharge imposed in April. Ferrari, which last year sold some 4,000 cars in the Americas, raised prices by 10% on imports to the United States after April 2, except for the Ferrari 296, SF90 and Roma model families. CEO Benedetto Vigna said that until there is an executive order lowering tariffs on imported cars, Ferrari will maintain the higher prices. 'It's very difficult to judge, because the order intake depends very much on the cars that we have available for order, and since we are close to the end of the life cycles of several of our models and others are sold out, we can't really measure the overall sentiment,'' CFO Antonio Picca Piccon added. Cars shipments from Europe prepare for latest price increases A light drizzle off the North Sea washed tens of thousands of cars ready to load on a giant cargo ship — all with a brand new increase in price thanks to American tariffs rolling out worldwide. Belgium's coastline is one of the chokepoints of the global trade in automobiles — brought by trains and trucks from the factories of Mercedes-Benz, Volkswagen, and BMW and others to ship to customers overseas in the United Kingdom, Asia, the Middle East, South America and North America. The port of Zeebrugge exports about 1.8 million cars every year from Europe around the world. And at just one terminal run by Internation Car Operators, about 70,000 cars sat waiting on teams of drivers in white gloves to drive them into a massive container ship shaped like a shoe box. When Trump initially announced global tariffs on cars, manufacturers scrambled to get their vehicles to customers before the tariff deadline. But following an agreement between Trump and European Commission President Ursula von der Leyen, the uncertainty is giving way to business-as-usual — just with a heftier price tag for consumers. The auto industry in Europe celebrated the deal, but cautioned that more negotiations are needed — noting that higher tariffs from the US on European cars will continue to negatively impact the industry. Further clarification on EU-US trade deal remains in flux The European Union is working on the assumption that the U.S. will impose a 15% tariff on most EU exports on Friday, even though the two sides have yet to complete a key document clarifying how the agreement will operate. Under a political agreement reached last weekend, Trump and European Commission President Ursula von der Leyen said the 15% duties would be imposed on around two-thirds of EU goods. But as of Thursday the two sides were still working on a joint statement that would lay out the terms of their understanding, EU commission spokesman Olof Gill said. Carve outs were agreed for a range of 'strategic' goods like aircraft and aircraft parts, certain chemicals, some drug generics or natural resources. Gill said that 'it is also our clear understanding that the U.S. will implement the exemptions to the 15% ceiling.' 'The U.S. has made these commitments. Now it's up to the US to implement them. The ball is in their court,' Gill said. He added that negotiations on additional exemptions to the new tariff regime continue. French skincare company says tariffs will lead to rising prices and job freezes French skincare company Yon-Ka is warning of job freezes, scaled-back investment, and rising prices after the U.S. and EU struck a trade deal that will see 15% tariffs imposed on most European goods entering the American market. 'The U.S. market is our first client', said Alexis Wolkowinski, President of Yon-Ka, in an interview at the company's headquarters outside Paris. 'We are strong in the U.S., but because we are strong, it's impacted us more than anything else. So yes, it's very, very difficult for us to have to support this tax.' 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Trump lashes out at India for its relationship with Russia The U.S. president on Truth Social suggested that he plans to do as little trade as possible with India and Russia. 'I don't care what India does with Russia,' Trump posted. 'They can take their dead economies down together, for all I care. We have done very little business with India, their Tariffs are too high, among the highest in the World. Likewise, Russia and the USA do almost no business together. Let's keep it that way.' Trump announced on Wednesday 25% tariffs on goods from India and additional penalties for India's reliance on Russia for oil and military equipment. Trump also issued a warning to Dmitry Medvedev, the former Russian president, saying that he should 'watch his words' and that he's 'entering very dangerous territory!' Trump is using Canada's recognition of the Palestinian state in trade talks Trump said Canada's announcement it will recognize a Palestinian state 'will make it very hard' for the U.S. to reach a trade agreement with its northern neighbor. The threat posted in the early hours Thursday on Trump's social media network is the latest way he has sought to use his trade war to coerce countries on unrelated issues and is a swing from the ambivalence he has expressed about other countries making such a move. 'Wow! Canada has just announced that it is backing statehood for Palestine,' Trump said in his post on Truth Social just past midnight. 'That will make it very hard for us to make a Trade Deal with them. Oh' Canada!!!" The Republican president said this week that he didn't mind British Prime Minister Keir Starmer taking a position on the issue of formally recognizing Palestinian statehood. And last week, he said that French President Emmanuel Macron's similar move was 'not going to change anything.' ▶ Read more about Trump's trade talks with Canada. US and Pakistan announce trade agreement The U.S. and Pakistan reached a trade agreement expected to allow Washington to help develop Pakistan's largely untapped oil reserves and lower tariffs for the South Asian country, officials from both nations said Thursday. Officials did not specify where the exploration would take place — and in a post on his Truth Social platform, Trump said 'we are in the process of choosing the oil company that will lead this partnership.' Pakistan's Prime Minister Shehbaz Sharif welcomed the 'long-awaited' deal and thanked Trump for playing a key role in finalizing it. Pakistan's Finance Ministry said in a statement early Thursday the agreement aims to boost bilateral trade, expand market access, attract investment and foster cooperation in areas of mutual interest. The deal includes a reduction in reciprocal tariffs, particularly on Pakistani exports to the U.S., the statement from the ministry said. A new figure wasn't immediately provided. ▶ Read more about the Pakistan's trade agreement with the U.S. Trump and his tariffs still face a challenge in federal court Trump may have gotten his way with tariffs on some countries, but his overhaul of American trade policy has not gone unchallenged. In May, a three-judge panel of the U.S. Court of International Trade agreed that Trump exceeded his powers when he declared a national emergency to plaster tariffs on imports from almost every country in the world. Now, on Thursday, the 11 judges on the U.S. Court of Appeals for the Federal Circuit in Washington, which typically specializes in patent law, are scheduled to hear oral arguments from the Trump administration and from the states and businesses that want his sweeping import taxes struck down. That court earlier allowed the federal government to continue collecting Trump's tariffs as the case works its way through the judicial system. The issues are so weighty — involving the president's power to bypass Congress and impose taxes with huge economic consequences in the United States and abroad — that the case is widely expected to reach the U.S. Supreme Court, regardless of what the appeals court decides. ▶ Read more about the challenge in federal court. Indian government assesses the impact of the US's coming tariffs India's Trade Minister Piyush Goyal on Thursday said the Indian government is in talks with exporters, industries and other stakeholders to assess the impact of 25% import tariff imposed by the U.S. on Indian goods. In a statement to the parliament, Goyal said the government will take all necessary steps to secure and advance the national interest. The minister said India has in the past decade transformed from being one of the fragile fives to the fastest growing major economy in the world. Goyal's comments were seen in contrast to Trump's social media post early Thursday wherein he slammed India and Russia, saying 'they can take their dead economies down together.' India relies heavily on imported crude oil, particularly from Russia India is currently the third biggest importer of oil after China and the United States, depending heavily on imported crude oil. Over 80% of India's crude oil is imported. Russia is the biggest supplier to India — followed by Iraq, Saudi Arabia, United Arab Emirates and the United States. Earlier this month, the country's crude processors were hit by the EU's sanctions on Indian diesel imports made from Russian oil, with Nayara Energy, an Indo-Russian oil refining and marketing company specifically targeted with penalties. 'Whether India will stop importing from Russia, depends on what the penalty is. The country will weigh its options before deciding,' said Sangeeta Godbole, a former trade negotiator with three decades of experience in the Indian government. Godbole said the vagueness of the penalty threat issued by the U.S. might be deliberate. 'It's all so fluid right now. According to me, the only people we can turn to are the Middle-East countries but they are part of the OPEC+ just like Russia,' she added. Top Indian business association expresses disappointment with 25% tariff rate The Federation of Indian Chambers of Commerce and Industry said it was disappointed with the imposition of 25% import tariffs and an additional penalty on Indian goods by the U.S. The 'move is unfortunate and will have a clear bearing on our exports,' said Harsha Vardhan Agarwal, president of the industry body. Agarwal hoped the higher tariffs will be short-lived and the two countries finalize a bilateral trade agreement soon. 'India and U.S. have a long-standing partnership, which is strengthened by our deepening engagement across an array of areas from technology to defense to energy and advance manufacturing. There is a lot our two countries can achieve together,' Agarwal said in a statement late Wednesday. US-South Korea trade deal includes $150 billion shipbuilding investment A top South Korean official says the $350 billion investment fund announced earlier by Trump includes $150 billion for cooperation on the shipbuilding industry. Kim Yong-beom, the presidential chief of staff for policy, told reporters in Seoul on Thursday that the $150 billion fund is 'the most noteworthy' part of the deal, saying it covers cooperation on all major parts of the shipbuilding industry such as constructions, maintenances, repairs and overhauls of vessels. He says South Korean companies have world-class shipbuilding capabilities and U.S. companies hold strengths in software sectors. South Korean president hails trade deal with the US South Korea's president hailed the trade deal announced by Trump Thursday, saying it would serve as a chance to further strengthen economic cooperation and military alliance with the United States. In a Facebook post, Lee Jae Myung said the $350 billion investment fund is meant to solidify a foundation for bilateral cooperation on strategic industries. The fund will play a role of supporting the entrance to the U.S. market by South Korean companies in areas where they excel such as shipbuilding, semiconductors, secondary batteries, biotechnology and energy. Lee also said the deal would remove uncertainty surrounding South Korea's export environment as the U.S. 15% tariff for goods from South Korea is a lower or similar figure facing other major trade competitors. 'The government was only engaged in negotiations by placing a top priority on national interests,' Lee said. 'It's important to pull out a mutually beneficial agreement, rather than seeking unilateral benefits.'
BBC News
13 minutes ago
- BBC News
BBC News quiz of the week: What did South Park do to annoy Trump?
This week saw US President Donald Trump visit Scotland, the Lionesses play against Spain in the Euro 2025 final, and the UK get its first female Astronomer how much attention did you pay to what else happened in the world over the past seven days?Quiz collated by George Sandeman and Grace Dean. Fancy testing your memory? Try last week's quiz, or have a go at something from the archives.
Reuters
13 minutes ago
- Reuters
US appeals court scrutinizes Trump's use of tariffs as trade deadline looms
WASHINGTON, July 31 (Reuters) - U.S. appeals court judges sharply questioned on Thursday whether President Donald Trump's tariffs were justified by the president's emergency powers, as lawyers for states and businesses challenging the measures argued he exceeded his authority. The U.S. Court of Appeals for the Federal Circuit in Washington, D.C., is considering the legality of "reciprocal" tariffs that Trump imposed on a broad range of U.S. trading partners in April, as well as tariffs imposed in February against China, Canada and Mexico. In hearing arguments in two cases brought by five small U.S. businesses and 12 Democratic-led U.S. states, judges pressed government lawyer Brett Shumate to explain how the International Emergency Economic Powers Act (IEEPA), a 1977 law historically used for sanctioning enemies or freezing their assets, gave Trump the power to impose tariffs. Shumate said that the law allows the president to have "extraordinary" authority in an emergency, including the ability to stop imports completely. He said IEEPA authorizes tariffs because it allows a president to "regulate" imports in a crisis. The judges seemed dubious of this sweeping argument. "IEEPA doesn't even say tariffs, doesn't even mention them," Judge Jimmie Reyna said. The arguments - one day before Trump plans to increase tariff rates on imported goods from nearly all U.S. trading partners - mark the first test before a U.S. appeals court of the scope of his tariff authority. The president has made tariffs a central instrument of his foreign policy, wielding them aggressively in his second term as leverage in trade negotiations and to push back against what he has called unfair practices. The court adjourned after about an hour-and-a-half of oral arguments. The judges did not say when they would rule, and the losing side will almost certainly appeal quickly to the U.S. Supreme Court. Trump, the first president to use IEEPA to impose tariffs, has said the April tariffs were a response to persistent U.S. trade imbalances and declining U.S. manufacturing power. He said the tariffs against China, Canada and Mexico were appropriate because those countries were not doing enough to stop illegal fentanyl from crossing U.S. borders, a claim the countries have denied. The states and businesses challenging the tariffs argued that they are not permissible under IEEPA and that the U.S. Constitution grants Congress, and not the president, authority over tariffs and other taxes. "No trade law in 200 years has been interpreted to give the president this power," Neal Katyal, a lawyer for the businesses, said. Judge Kimberly Moore challenged Benjamin Gutman, representing the state of Oregon, on his argument that the U.S. trade deficit is not an "unusual and extraordinary" threat that would trigger IEEPA's emergency powers, noting that Trump said the trade deficit contributed to compromised military readiness. "That bothers me - I'm a little concerned about compromised military readiness," Moore said. "How about you?" The case is being heard by a panel of all of the court's active judges, eight appointed by Democratic presidents and three appointed by former Republican presidents. Tariffs are starting to build into a significant revenue source for the federal government, with customs duties in June quadrupling to about $27 billion, a record, and through June have topped $100 billion for the current fiscal year. That income could be crucial to offset lost revenue from Trump's tax bill passed into law earlier this month. But economists say the duties threaten to raise prices for U.S. consumers and reduce corporate profits. Trump's on-again, off-again tariff threats have roiled financial markets and disrupted U.S. companies' ability to manage supply chains, production, staffing and prices. On May 28, a three-judge panel of the U.S. Court of International Trade said IEEPA did not authorize tariffs related to longstanding trade deficits. The Federal Circuit has allowed the tariffs to remain in place while the litigation continues. The case will have no impact on tariffs levied under more traditional legal authority, such as duties on steel and aluminum imports. Trump's Department of Justice has argued that limiting the president's tariff authority could undermine ongoing trade negotiations, while other Trump officials have said that negotiations have continued with little change after the initial setback in court. The president recently announced trade deals that set tariff rates on goods from the European Union and Japan, following smaller trade agreements with Britain, Indonesia and Vietnam. Trump has set an August 1 date for higher tariffs on countries that don't negotiate new trade deals. Mexican President Claudia Sheinbaum said on Thursday that Trump would pause new tariffs set to go into effect on the U.S.'s southern neighbor and a 90-day period to work on a trade deal.
