Oil prices pause slide on US-Japan trade deal
Oil prices edged up in Asian trade on Wednesday after falling for three consecutive sessions as a U.S. trade deal with Japan signalled progress on tariffs, though gains were capped by fading hopes for a breakthrough at an EU-China summit.
Brent crude futures rose 21 cents, or 0.31%, to $68.80 a barrel by 0351 GMT. U.S. West Texas Intermediate crude futures gained 17 cents, or 0.26%, at $65.48 per barrel.
Both benchmarks were down about 1% in the previous session after the EU said it was considering countermeasures against U.S. tariffs, as hope faded for a deal ahead of an August 1 deadline.
President Donald Trump said on Tuesday that the U.S. and Japan had struck a trade deal that includes a 15% tariff on U.S. imports from Japan. He also said Japan had agreed on $550 billion in investments in the U.S.
Meanwhile, industry expectations are low for Thursday's EU-China summit, which will test the bloc's unity and resolve amid mounting trade tensions with both Beijing and Washington.
"The slide (in prices) of the past three sessions appears to have abated but I don't expect much of an upward impetus from news of the U.S.-Japan trade deal as the hurdles and delays being reported in talks with the EU and China will remain a drag on sentiment," said Vandana Hari, founder of oil market analysis provider Vanda Insights.
China's commerce minister and the European Union's trade chief had a "candid and in-depth" discussion on economic and trade cooperation as well as other issues that both sides face ahead of the summit, the Chinese ministry said on Wednesday.
Separately, U.S. crude and gasoline stocks fell last week, market sources said, citing American Petroleum Institute figures on Tuesday. Distillate stocks rose by 3.48 million barrels, they added.
"This will offer some relief to the middle distillate market, which has been looking increasingly tight," ING analysts wrote in a note, adding that low crude inventories will offer some support to prices even as a large surplus is expected to hit the market later in the year.
In another bullish sign for the crude market, the U.S. energy secretary said on Tuesday that the U.S. would consider sanctioning Russian oil to end the war in Ukraine.
The EU on Friday agreed its 18th sanctions package against Russia, lowering the price cap for Russian crude. But analysts said a lack of U.S. participation would hinder the effectiveness of the package.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Shafaq News
4 hours ago
- Shafaq News
Iraq's Federal Court throws out lawsuits on Kurdistan salaries
Shafaq News – Baghdad Iraq's Federal Supreme Court on Monday dismissed two lawsuits concerning the disbursement of salaries in the Kurdistan Region, citing a lack of jurisdiction in both cases. The first suit (No. 107) targeted Prime Minister Mohammed Shia al-Sudani and Finance Minister Taif Sami, demanding a ruling to keep employee salaries in the Region insulated from political dispute and the current agreement between Baghdad and Erbil. A second lawsuit (No. 104), also against Minister Sami, sought to compel the federal government to release monthly payments to public servants, retirees, families of martyrs, and recipients of social support—regardless of disagreements over the Budget Law or other related issues.
Shafaq News
5 hours ago
- Shafaq News
Kirkuk employees fall prey to digital scams
2025-07-28T07:40:36+00:00 Shafaq News – Kirkuk Public employees in Iraq's Kirkuk are increasingly falling victim to digital scams through fake mobile apps mimicking Qi Card and Mastercard services, exposing the vulnerability of users with limited tech literacy. Government worker Hassan Khaled told Shafaq News that scammers often initiate contact through suspicious links or impersonation calls, extracting card details or tricking victims into downloading malicious apps to siphon funds. Khaled reported that fraudsters exploited the 'Salfni' cash advance feature to withdraw 600,000 IQD (about $431) from his account without his consent. Another victim, Jamil Al-Obaidi, recounted a similar fraud in which a caller posing as a Mastercard representative warned of salary suspension unless he downloaded a bogus app. 'After complying, 500,000 IQD [around $359] vanished from my account,' he told our agency, urging authorities to ban unverified apps, restrict transactions to certified platforms, and enforce stricter controls on electronic payment systems. Digital fraud continues to surge across Iraq as smart cards and instant loans become more common, yet neither Qi Card nor Mastercard has addressed the recent breaches publicly. Speaking to our agency, economic expert Samir Al-Hasani warned that such fraud not only targets individuals but also erodes trust in digital banking and hinders Iraq's financial modernization. He blamed the rise in scams on poor cybersecurity and a lack of financial education, calling on lawmakers to criminalize digital impersonation and launch national programs promoting safe financial app usage.
Shafaq News
8 hours ago
- Shafaq News
Oil prices rise on trade deals
Shafaq News Oil prices rose on Monday after the United States clinched a trade deal with the European Union and may extend a tariff pause with China, relieving concerns that higher levies could have hurt economic activity and limited fuel demand. Brent crude futures inched up 20 cents, or 0.29%, to $68.64 a barrel by 0336 GMT, while U.S. West Texas Intermediate crude stood at $65.31 a barrel, up 15 cents, or 0.23%. The US-European Union trade deal and a possible extension in the US-China tariff pause are supporting global financial markets and oil prices, IG markets analyst Tony Sycamore said. 'With the risk of a prolonged trade war and the importance of the August tariff deadlines being steadily defused, markets have responded positively,' he added in a note. Sunday's US-EU framework trade pact sets an import tariff of 15% on most EU goods, half the threatened rate. The deal averted a bigger trade war between two allies that account for almost one-third of global trade and could crimp fuel demand. Also set for Monday is a meeting in Stockholm of senior US and Chinese negotiators aiming to extend before an August 12 deadline a truce holding off sharply higher tariffs. Oil prices settled on Friday at their lowest in three weeks weighed down by global trade concerns and expectations of more oil supply from Venezuela. State-run oil company PDVSA is readying to resume work at its joint ventures under terms similar to Biden-era licenses, once U.S. President Donald Trump reinstates authorisations for its partners to operate and export oil under swaps, company sources said. Though prices were up slightly on Monday, gains were limited by the prospect of OPEC+ further easing supply curbs. A market monitoring panel of the Organization of the Petroleum Exporting Countries and their allies is set to meet at 1200 GMT on Monday. It is unlikely to recommend altering existing plans by eight members to raise oil output by 548,000 barrels per day in August, four OPEC+ delegates said last week, though another source said it was too early to say. ING expects OPEC+ will at least complete the full return of 2.2 million barrels per day of the additional voluntary supply cuts by the end of September. That would work out to a supply hike in September of at least 280,000 barrels per day. However, there is clearly room for a more aggressive hike. The producer group is keen to recover market share while summer demand is helping to absorb the extra barrels. JP Morgan analysts said global oil demand rose by 600,000 bpd in July on year, while global oil stocks rose 1.6 million bpd. In the Middle East, Yemen's Houthis said on Sunday they would target ships of companies that do business with Israeli ports, regardless of nationality, in what they called a fourth phase of military operations against Israel over the Gaza conflict.
