logo
Oil Updates — prices little changed as investors eye impact of new sanctions on Russia

Oil Updates — prices little changed as investors eye impact of new sanctions on Russia

Arab News3 days ago
SINGAPORE/BEIJING: Oil prices were little changed on Monday as traders assess the impact of new European sanctions on Russian oil supplies while they also worry about tariffs possibly weakening fuel demand as Middle East producers are raising output.
Brent crude futures dropped 10 cents to $69.18 a barrel by 8:55 a.m. Saudi time, after settling 0.35 percent lower on Friday. US West Texas Intermediate crude was at $67.33 a barrel, down 1 cent, following a 0.30 percent decline in the previous session.
The European Union approved on Friday the 18th package of sanctions against Russia over the conflict in Ukraine, which also targeted India's Nayara Energy, an exporter of oil products refined from Russian crude.
Kremlin spokesperson Dmitry Peskov said on Friday that Russia had built up a certain immunity to Western sanctions.
The EU sanctions followed US President Donald Trump's threats last week to impose sanctions on buyers of Russian exports unless Russia agrees to a peace deal in 50 days.
ING analysts said the lack of reaction showed the oil market is not convinced by the effectiveness of these sanctions.
'However, the part of the package likely to have the biggest market impact is the EU imposing an import ban on refined oil products processed from Russian oil in third countries,' the analysts led by Warren Patterson said.
'But clearly, it will be challenging to monitor crude oil inputs into refineries in these countries and, as a result, enforce the ban.'
Iran, another sanctioned oil producer, is due to hold nuclear talks in Istanbul with Britain, France and Germany on Friday, an Iranian Foreign Ministry spokesperson said on Monday. That follows warnings by the three European countries that a failure to resume negotiations would lead to international sanctions being reimposed on Iran.
In the US, the number of operating oil rigs fell by two to 422 last week, the lowest since September 2021, Baker Hughes said on Friday.
US tariffs on European Union imports are set to kick in on August 1, although US Commerce Secretary Howard Lutnick said on Sunday he was confident the United States could secure a trade deal with the bloc.
'US tariff concerns will continue to weigh in the lead up to August 1 deadline, while some support may come from oil inventory data if it shows tight supply,' IG market analyst Tony Sycamore said.
'It feels very much like a $64-$70 range in play for the week ahead.'
Brent crude futures have traded between a low of $66.34 a barrel and a high of $71.53 after a ceasefire deal on June 24 halted the 12-day Israel-Iran war.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Xi says China, EU must deepen trust in turbulent world
Xi says China, EU must deepen trust in turbulent world

Al Arabiya

time34 minutes ago

  • Al Arabiya

Xi says China, EU must deepen trust in turbulent world

Chinese President Xi Jinping said China and the European Union must deepen mutual trust amid growing global instability, as he hosted top EU officials for a summit in Beijing on Thursday. Xi emphasized the need to find 'common ground,' even as tensions persist on issues ranging from trade to the war in Ukraine and human rights. China has positioned itself as a more stable and reliable partner than the United States and has sought to draw the EU closer. However, Brussels has voiced concern over China's growing trade surplus, fears that subsidized Chinese goods could swamp European markets, and Beijing's tacit support for Russia in its war against Ukraine. Though the summit marked 50 years of diplomatic ties, the long list of grievances signaled a contentious meeting. 'The more severe and complex the international situation is, the more important it is for China and the EU to strengthen communication, increase mutual trust, and deepen cooperation,' Xi said, addressing European Commission President Ursula von der Leyen and European Council chief Antonio Costa. Von der Leyen said on X that the summit was 'an opportunity to both advance and rebalance our relationship,' expressing confidence in the potential for mutually beneficial cooperation. A senior EU official acknowledged the deep divisions: 'We know that we don't see eye to eye with China on many issues... but we believe that it is essential to have this kind of very direct and open and constructive conversation.' At the top of the EU's agenda is the $360 billion trade deficit with China, which von der Leyen has called 'unsustainable.' Beijing has rejected the concern, urging Europe to 'rebalance its mentality.' Von der Leyen also said Brussels would press China to open its markets further and lift export restrictions on rare earths. The EU has already imposed steep tariffs on Chinese electric vehicles, citing unfair industrial subsidies, while China has launched retaliatory probes into European pork, brandy, and dairy. Another major point of friction is China's close relationship with Moscow. Brussels says Beijing's deepening economic ties with Russia amount to tacit support for its war in Ukraine. The EU recently imposed sanctions on two Chinese banks over dual-use goods—items that can serve both civilian and military purposes—leading to a strong rebuke from Beijing. 'We're not naive,' said the EU official. 'We're not asking China to cut relations, but to step up the customs and financial controls.' Beijing described relations as being at a 'pivotal juncture,' citing rising protectionism and global turbulence. 'The summit serves the interests not only of both parties, but also of the whole world,' said foreign ministry spokesperson Guo Jiakun. While Brussels sought to temper expectations, areas like climate cooperation were seen as offering more room for progress. But analysts were skeptical that any breakthroughs would occur. 'This summit is not going to change the course of Europe–China relations, which is one of deterioration due to structural issues,' said Abigael Vasselier of the MERICS think tank. 'Europe needs to be ready for a long-term struggle and probably needs to rethink its China strategy at this stage.'

World's top court paves way for climate reparations
World's top court paves way for climate reparations

Arab News

time6 hours ago

  • Arab News

World's top court paves way for climate reparations

THE HAGUE: The world's highest court Wednesday declared that states are obliged under international law to tackle climate change and warned that failing to do so could open the door to reparations. In a historic statement, the International Court of Justice said climate change was an 'urgent and existential threat' and countries had a legal duty to prevent harm from their planet-warming pollution. Countries breaching their climate obligations were committing a 'wrongful act,' the court said in its advisory opinion, which is not legally binding but carries political and legal weight. 'The legal consequences resulting from the commission of an internationally wrongful act may include... full reparations to injured states in the form of restitution, compensation and satisfaction,' said ICJ President Yuji Iwasawa on behalf of the 15-judge panel. This would be on a case-by-case basis where a 'sufficient direct and certain causal nexus' had been shown 'between the wrongful act and the injury,' the court added. Campaigners and countries on the climate frontlines hailed a milestone moment in the fight for accountability from big polluters most responsible for global warming. 'This is a victory for our planet, for climate justice and for the power of young people to make a difference,' said UN Secretary-General Antonio Guterres. Ralph Regenvanu, the climate change minister for Vanuatu, the Pacific island nation that spearheaded the case at The Hague, was jubilant. Speaking to AFP outside the court, Regenvanu said it was 'a very strong opinion at the end' and better than hoped. 'We can use these arguments when we talk with our partners, some of the high-emitting states. We can say you have a legal obligation to help us,' he said. 'This helps us in our arguments. It's going to give us a lot more leverage... in all negotiations.' This was the biggest case in ICJ history, and seen as the most consequential in a recent string of landmark climate moves. The United Nations had tasked the 15 judges at the ICJ, a UN court in The Hague that adjudicates disputes between nations, to answer two fundamental questions. First: what must states do under international law to protect the environment from greenhouse gas emissions for the future? Second: what are the consequences for states whose emissions have caused environmental harm, especially to vulnerable low-lying island states? In a detailed summary of the opinion, Iwasawa said the climate 'must be protected for present and future generations.' The adverse effect of a warming planet 'may significantly impair the enjoyment of certain human rights, including the right to life,' he added. Legal and climate experts said the opinion, while not legally binding, could have far-reaching consequences for national courts, legislation and public debate. 'The court's clear and detailed articulation of state obligations will be a catalyst for accelerated climate action and unprecedented accountability,' David Boyd, a former UN Special Rapporteur on Human Rights and the Environment, told AFP. Johan Rockstrom, director of the Potsdam Institute for Climate Impact Research, said the ruling bound all nations by international law to prevent harm from emissions of planet-warming greenhouse gases. The court was 'pointing the direction for the entire world and making clear that every nation is legally obliged to solve the climate crisis,' he told AFP. 'Perfect ending' Courts have become a key battleground for climate action as frustration has grown over sluggish progress toward curbing planet-warming pollution from fossil fuels. The Paris Agreement, struck through the UN Framework Convention on Climate Change (UNFCCC), has rallied a global response to the crisis, but not at the speed necessary to protect the world from dangerous overheating. The journey to The Hague began six years ago with students from the climate-imperilled Pacific region fed up with the lack of accountability for the damage afflicting their homelands. 'Young Pacific Islanders initiated this call for humanity to the world. And the world must respond,' said UN chief Guterres, praising Vanuatu's leadership. The fight pitted major wealthy economies against the smaller, less developed states which are most at the mercy of a warming planet. More than 100 nations and groups made submissions, many from the Pacific who gave impassioned appeals in colorful traditional dress. 'It's such a perfect ending to a campaign that started in a classroom,' said Vishal Prasad, director of the student-led campaign that kicked off the case. 'We have now a very, very strong tool to hold power accountable, and we must do that now. The ICJ has given everything possible,' he told AFP. The United States, which has embraced a fossil fuel agenda under President Donald Trump, had a muted response to the ruling. A US State Department spokesperson said it 'will be reviewing the Court's advisory opinion in the coming days and weeks.' French Ecological Transition Minister Agnes Pannier-Runacher hailed the advisory opinion as a 'victory for the most vulnerable states, a victory for France and a victory for the climate.' John Kerry, the former US special envoy for climate change, said 'it should not take the stamp of international law to motivate countries to do what is already profoundly in their economic interests.' 'We shouldn't need another reason to act and accelerate action,' he told AFP.

‘A free Ukraine': Kyiv protests law threatening anti-corruption bodies
‘A free Ukraine': Kyiv protests law threatening anti-corruption bodies

Arab News

time6 hours ago

  • Arab News

‘A free Ukraine': Kyiv protests law threatening anti-corruption bodies

KYIV, Ukraine: At a rare protest in central Kyiv demonstrators rallied Wednesday against a law that curbs the power of anti-corruption agencies, warning the fight for Ukraine's democracy was taking place both on the battlefield and at home. The legislation, removing the independence of two key anti-corruption bodies, sparked the first major protests in Ukraine since it began fighting off the Russian invasion over three years ago. 'Our struggle takes place on two fronts. Our main enemy is external, but we have an internal battle too,' said protester Viacheslav Bykov. 'We don't want Ukraine to be part of Russia, we don't want a corrupt or authoritarian Ukraine. We want a free Ukraine,' he added. Several thousand demonstrators — mostly young — gathered outside a theater in Kyiv, calling for a veto to the law passed by Ukraine's parliament on Tuesday. The law places the National Anti-Corruption Bureau of Ukraine (NABU) and Specialized Anti-Corruption Prosecutor's Office (SAPO) under the direct authority of the prosecutor general, who is appointed by the president. Critics say the legislation would facilitate presidential interference in corruption probes and threatens the independence of key institutions in Ukraine. European Commission weighs in Zelensky responded to the backlash on Wednesday evening, saying he would submit a new bill ensuring 'all norms for the independence of anti-corruption institutions will be in place.' Kyiv's partners had reacted with alarm, including European Commission head Ursula von der Leyen, who the EU said demanded explanations from Zelensky over the change. Civil society groups warn the bill is part of a broader pattern of pressure on anti-corruption activists and bodies. Some European allies worry the moves will undermine anti-corruption reforms key to Ukraine's bid to join the European Union — a fear shared by many protesting on Wednesday. 'We've worked for years to move closer to Europe... only to be thrown back 10 years in a single day,' said protester Anya Kutsevol. Ukraine's two anti-corruption bodies, NABU and SAPO, were born a decade ago in the wake of the 2014 Maidan revolution. Those pro-European protests, centered on Kyiv's main square, also called Maidan, ousted a Kremlin-backed leader who scrapped a key partnership agreement with the EU. The Kremlin, which refused to accept Ukraine's democratic turn toward Europe, then launched a first assault over Ukraine that led Moscow-backed separatists to occupy Crimea and parts of the eastern Donbas region. 'Ukraine is Europe,' Kutsevol said, 'we won't be returned to Russia. We'll keep fighting for Europe.' 'Undermining unity' Some fear that a political crisis over the legislation could work in Russia's favor by undermining unity within the country, which is struggling to hold the front. Kremlin spokesman Dmitry Peskov seized on the opportunity to say there was 'a lot of corruption' in Ukraine. 'If I were Russia, I would do the same,' said another protester, Yevgen Popovychenko, convinced Moscow would try to exploit the protests. He was holding a banner that read: 'Don't take me back' to the years of Maidan, where he took to the streets as a 21-year-old. As he stood in the crowd, he said he was having flashbacks from Maidan, a feeling shared by his friends. But many other protesters were only children during the famed 2014 demonstrations — including 25-year-old Kutsevol. 'When tires were still burning, I was 14. What good was I?' she said. Wednesday's was her first political protest, and she teared up looking at people gathered around her for the second day in a row, despite martial law banning large gatherings. She vowed to keep defending Ukraine's democracy. 'We're adults now. Now it's our turn.'

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store