logo
Brent oil prices tick down after gaining on Caspian pump station attack

Brent oil prices tick down after gaining on Caspian pump station attack

Zawya18-02-2025

BEIJING: Brent crude oil prices paused in early trading on Tuesday after gaining in the previous session following a drone attack on an oil pipeline pumping station in Russia that reduced flows from Kazakhstan.
Brent crude futures ticked down 7 cents, or 0.09%, to $75.15 a barrel by 0137 GMT.
U.S. West Texas Intermediate (WTI) crude rose 47 cents to $71.21 a barrel. The WTI contract did not settle at its normal time on Monday due to the U.S. Presidents' Day holiday.
The drone strike on the Kropotkinskaya station in Russia's southern Krasnodar region reduced shipments from Kazakhstan to world markets by Western firms including Chevron and Exxon Mobil, operator Caspian Pipeline Consortium said on Monday.
The Black Sea CPC Blend oil loading plan for February would remain unchanged, two sources familiar with the plan told Reuters.
Weak fundamentals also kept the price response muted. BMI analysts said in a note that they see Brent prices averaging $76 a barrel in 2025, down 5% from the 2024 average, because of market oversupply, tariffs and trade tensions.
OPEC+ producers are not considering delaying a series of monthly oil supply increases that is scheduled to begin in April, according to a Russian state media report.
In December, OPEC had pushed back a plan to begin raising output to April, due to weak demand and rising supply outside the group.
(Reporting by Colleen Howe; Editing by Michael Perry)

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Gold gains on weaker dollar as US-China talks in focus
Gold gains on weaker dollar as US-China talks in focus

Gulf Today

timea day ago

  • Gulf Today

Gold gains on weaker dollar as US-China talks in focus

Gold prices rose on Monday, supported by a weaker US dollar ahead of U.S.-China trade talks aimed at resolving tensions, while platinum extended gains for a sixth straight session to scale a four-year peak. Spot gold rose 0.3 per cent to $3,318.76 an ounce, as of 1007 GMT, after dropping earlier in the session to $3,293.29, its lowest level since June 2. US gold futures fell 0.2 per cent to $3,339.70. The dollar fell 0.3 per cent against a basket of peers, making bullion cheaper for holders of other currencies. Investors recognise that drivers of gold, including trade and geopolitical tensions, debt concerns and weak economic growth, remain in place and should continue to support the metal in the months ahead, said Giovanni Staunovo, an analyst at UBS. US and Chinese officials will sit down in London on Monday for talks aimed at defusing the trade dispute between the two superpowers. Stronger-than-expected US non-farm payrolls data have led investors to scale back expectations for Federal Reserve rate cuts this year from two to one in October. Market attention will turn to US CPI data, due on Wednesday, for further clues on the Fed's monetary policy path. Gold, considered a safe-haven asset during political and economic uncertainty, tends to thrive in a low-rate environment. Meanwhile, China's central bank added gold to its reserves in May for the seventh straight month, official data showed. Reuters

Gold gains with focus on US-China trade talks; platinum tops 4-year peak
Gold gains with focus on US-China trade talks; platinum tops 4-year peak

Al Etihad

time2 days ago

  • Al Etihad

Gold gains with focus on US-China trade talks; platinum tops 4-year peak

9 June 2025 13:26 (REUTERS)Gold prices rose on Monday, supported by a weaker US dollar ahead of US-China trade talks aimed at resolving tensions, while platinum extended gains for a sixth straight session to scale a four-year gold rose 0.4% to $3,323.71 an ounce, as of 0806 GMT, after dropping earlier in the session to $3,293.29, its lowest level since June gold futures was steady at $3, dollar (DXY), opens new tab fell 0.3% against a basket of peers, making bullion cheaper for holders of other recognise that key drivers of gold like trade and geopolitical tensions, debt concerns and weak economic growth, remain in place and should continue to support the metal in the months ahead, said Giovanni Staunovo, UBS US and Chinese officials will sit down in London on Monday for talks aimed at defusing the high-stakes trade dispute between the two superpowers that has widened in recent weeks beyond tit-for-tat tariffs to export controls over goods and components critical to global supply US non-farm payrolls data have led investors to scale back expectations for Federal Reserve rate cuts this year from two to only one in attention now shifts to US CPI data, due on Wednesday for further clues on the Fed's monetary policy traditionally considered a safe-haven asset during political and economic uncertainty, tends to thrive in a low-rate China's central bank added gold to its reserves in May for the seventh straight month, official data platinum rose 3% to $1,210.80, its highest level since May 2021. Spot silver was up 1% to $36.3 per ounce, while palladium rose 2.3% to $1,070.97.

OPEC+ Quota Increases Yet to Yield Production Gains
OPEC+ Quota Increases Yet to Yield Production Gains

Arabian Post

time2 days ago

  • Arabian Post

OPEC+ Quota Increases Yet to Yield Production Gains

Arabian Post Staff -Dubai OPEC+ has escalated production quotas by roughly one million barrels per day from March to June, aiming to reactivate idled capacity, yet actual output across the group remains flat, according to data from Morgan Stanley analysts led by Martijn Rats. Saudi Arabia in particular shows no detectable uptick, underscoring a lag between policy shifts and market reality. The decision to accelerate quota rollbacks follows sustained cuts totalling around 2.2 million b/d, initiated in early 2023 to support prices. With non‑OPEC supply growing and global demand weakening, the efficacy of supply restraint has waned, prompting OPEC+ to pivot back to restoring output gradually. Despite headline quota increases of approximately 137,000 b/d per month since April, actual deliveries appear limited. ADVERTISEMENT Underlying structural factors are at play. Several members—most notably Kazakhstan and Iraq—have reportedly exceeded their quotas, diluting the announced gains. Saudi Arabia, with substantial spare capacity, stands out as the most capable contributor to any genuine rise in output. However, its contribution remains muted so far. Analysts suggest this reflects a strategic choice to reclaim market share rather than an immediate scale-up. Analysts at Morgan Stanley project modest growth: between June and September, OPEC+ core members may add around 420,000 b/d—approximately half of which could originate from Saudi Arabia. Even then, actual production may fall well short of quotas, with implementation challenges persisting. This gap between policy and output carries market implications. With more supply forecast, Morgan Stanley predicts a surplus of roughly 800,000 b/d in Q4 and 1.5–2.0 million b/d in early 2026, pressuring Brent crude prices down toward the mid‑$50s. Currently, Brent trades near $66 per barrel—11% below its level at the start of the year. In parallel, geopolitical friction between Saudi Arabia and Russia surfaced during policy talks. Riyadh favoured a more aggressive quota rollback, while Moscow, alongside Oman and Algeria, urged caution amid worries about demand resilience. The compromise settled on another 411,000 b/d increase for July, a repetition of earlier monthly hikes. Markets initially responded positively: oil prices climbed 3–4% following the July quota announcement, with Brent touching the mid‑$60s. That rebound, however, reflected relief over continuity rather than enthusiasm over fresh supply. Wildfires in Canada and refinery maintenance cycles were also cited as supporting factors. Across OPEC+, reliability of quotas remains a concern. While some members exceed limits, others—constrained by infrastructure or investment—may struggle to ramp up. Saudi Arabia's spare capacity remains central, but constraints on countries like Russia complicate the outlook even as OPEC+ restores cut volumes faster than planned. Meanwhile, non‑OPEC supply continues to grow, particularly in the U.S., Canada, Guyana and Brazil—with forecast increases of about 1.1 million b/d in 2025. That expansion alone could outpace expected global demand growth of 800,000 b/d, risking oversupply irrespective of OPEC+ decisions. With a full quota restoration now likely by September 2025—months ahead of the original schedule—and non‑OPEC volumes outweighing demand growth, the market faces a mounting supply glut heading into late 2025 and 2026. Analysts caution that idled capacity may remain untouched for months beyond official quotas, delaying meaningful production gains. As OPEC+ enters this intensified phase of quota reopening, its central challenge remains execution rather than announcement. High-profile policy shifts are yet to translate into barrels at market, and the divergence between targets and reality could widen over the coming quarters. Market players are now watching whether Saudi Arabia leads by example or the rhetoric fades before the pumps do.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store