Oil rises to 3-week high as investors eye Trump statement on Russia
Brent crude futures rose 58 cents, or 0.8%, to $70.94 a barrel by 0900 GMT, while U.S. West Texas Intermediate crude futures climbed 59 cents, 0.9%, to $69.04.
Higher crude imports by China and expectations around U.S. President Donald Trump's announcement on Russia are supporting prices, UBS analyst Giovanni Staunovo said.
Donald Trump said on Sunday that he will send Patriot air defence missiles to Ukraine. He is due to make a 'major statement' on Russia on Monday, having expressed his frustration with Russian President Vladimir Putin due to the lack of progress in ending the war in Ukraine.
In a bid to pressure Moscow into good-faith peace negotiations with Ukraine, a bipartisan U.S. bill that would hit Russia with sanctions gained momentum last week in Congress. European Union envoys, meanwhile, are on the verge of agreeing an 18th package of sanctions against Russia that would include a lower price cap.
Oil rises over as investors weigh market outlook
China's June oil imports increased 7.4% on the year to 12.14 million barrels per day, reaching the highest since August in 2023, according to customs data released on Monday.
China is likely to continue stockpiling, but with storage at 95% of the peak inventory build from 2020, these inventories are likely to emerge in 'visible' Western market locations that are crucial for price formation, exerting downward pressure on prices, J.P. Morgan's research team said in a client note.
Last week, Brent rose 3%, while WTI had a weekly gain of around 2.2%, after the International Energy Agency said the global oil market may be tighter than it appears.
Investors are also eyeing the outcome of U.S. tariff talks with key trading partners.
European Union envoys are on the verge of agreeing an 18th package of sanctions against Russia that would include a lower price cap on Russian oil, four EU sources said after a Sunday meeting.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 hours ago
- Business Recorder
Pakistan, Russia agree to enhance ties in trade, energy, defence sectors
Pakistan and Russia have agreed to further enhance cooperation in trade, energy, agriculture and defence sectors. This understanding came at a meeting between Deputy Prime Minister and Foreign Minister Ishaq Dar and Russian Foreign Minister Sergei Lavrov on the sidelines of the SCO Council of Foreign Ministers meeting in Tianjin, China. During the meeting, both the dignitaries expressed satisfaction over the positive trajectory of bilateral ties, DPM's Office said. On this occasion, the foreign minister reiterated the invitation for FM Lavrov to visit Pakistan. FM Dar met Chinese President Xi Jinping as well at the Great Hall of the People in Beijing and conveyed him the warm greetings of the leadership, government and people of Pakistan. 'As iron-clad brothers and all-weather strategic cooperative partners, we remain committed to deepening Pak-China enduring friendship and advancing shared regional goals,' Dar wrote in a post on X. The meeting between the foreign minister and Chinese president was held on the sidelines of the Shanghai Cooperation Organization (SCO) Council of Foreign Ministers meeting. Meanwhile, Foreign Minister Dar also represented Pakistan at the joint call of the Foreign Ministers of the SCO Member States on President Xi. The Chinese president, welcoming the heads of delegations, underlined the salience of regional cooperation under the ambit of SCO, an organisation covering the Eurasian land mass and a large expanse of the world's population, Radio Pakistan reported. Senator Dar arrived in Beijing, China, on Monday to attend a three-day meeting of the SCO Council of Foreign Ministers being held in Tianjin, China. He is attending the event at the invitation of Foreign Minister of China Wang Yi.
Business Recorder
3 hours ago
- Business Recorder
Rupee records slight gain against US dollar
Rupee's Performance Against US Dollar Since 04 March 2025 Pakistani rupee registered slight gain against the US dollar, appreciating 0.02% in the inter-bank market on Tuesday. At close, the currency settled at 284.67, a gain of Re0.05. On Monday, the currency settled at 284.72. Globally, the US dollar hovered near a three-week high versus major peers on Tuesday as traders awaited the release of US inflation data later in the day that could provide clues on the path for monetary policy. The US currency was also buoyed by elevated Treasury yields, with investors weighing a potential exit of Jerome Powell from the Federal Reserve as President Donald Trump continued his criticism of the central bank chairman. Currencies showed little reaction to data showing China's economy grew 5.2% last quarter, slightly topping analysts' forecasts. Bitcoin drifted further from Monday's all-time peak of $123,153.22 following a seven-day, 14% surge as investors bet on long-sought legislative policy wins for the cryptocurrency industry this week. It was changed hands at around $118,215 as of 0240 GMT. The US dollar was little changed at 147.68 yen, after earlier rising to the highest since June 23 at 147.89 yen. The dollar index, which tracks the currency against the yen and five other major rivals, stood at 98.050, not far below the overnight peak of 98.136, the highest since June 25. Oil prices, a key indicator of currency parity, fell on Tuesday after US President Donald Trump's lengthy 50-day deadline for Russia to end the Ukraine war and avoid sanctions eased immediate supply concerns. Brent crude futures fell 29 cents, or 0.4%, to $68.92 a barrel by 0342 GMT, while US West Texas Intermediate crude futures fell 35 cents, or 0.5%, to $66.63. Both contracts settled more than $1 lower in the previous session.
Business Recorder
4 hours ago
- Business Recorder
Most Gulf markets gain ahead of key US data, trade talks
Most major stock markets in the Gulf rose in early trade on Tuesday ahead of U.S. inflation data due later in the day, signalling investors' relatively upbeat outlook on talks Washington and major trading partners. U.S. President Donald Trump signalled he was open to discussions on tariffs after his weekend threat to impose 30% duties on imports from the European Union and Mexico from August 1. Japanese Prime Minister Shigeru Ishiba, meanwhile, is arranging to meet U.S. Treasury Secretary Scott Bessent on Friday, the Yomiuri newspaper reported on Tuesday. Investors are also awaiting U.S. consumer price data for June, due on Tuesday, and will monitor for any upward pressure on prices from tariffs that might influence U.S. Federal Reserve interest rate decisions. The Fed's actions have a significant impact on the Gulf region's monetary policy, as most regional currencies are pegged to the U.S. dollar. Dubai's main share index gained 0.7%, led by a 2.7% rise in top lender Emirates NBD and a 1.4% increase in blue-chip developer Emaar Properties. In Abu Dhabi, the index climbed 0.7%, with Abu Dhabi Commercial Bank jumping 6%. Most Gulf stocks subdued as Trump steps up tariff threats The lender, which is the Gulf country's third-largest by asset volume, posted second-quarter net profit of 2.32 billion dirham ($631.65 million), also exceeding analysts' consensus estimates, according to data compiled by LSEG. The Qatari index added 0.1%, helped by a 0.4% rise in petrochemical maker Industries Qatar. However, Doha Bank fell 0.7%, despite reporting an increase in first-half profit. Saudi Arabia's benchmark index eased 0.3%, hit by a 0.6% fall in oil giant Saudi Aramco. Oil prices - a catalyst for the Gulf's financial markets - fell after Trump's lengthy 50-day deadline for Russia to end the Ukraine war and avoid sanctions eased immediate supply concerns.
