Oil Prices Rise on Strong Demand, Easing Trade Tensions
Brent crude futures rose 27 cents, or 0.39%, to $68.79 a barrel at 0000 GMT. U.S. West Texas Intermediate crude futures were up 31 cents, or 0.47%, at $66.69. Both benchmarks fell more than 0.2% in the previous session.
U.S. crude inventories fell by 3.9 million barrels to 422.2 million barrels last week, the Energy Information Administration said on Wednesday, a steeper decline than forecasts for a 552,000-barrel draw, suggesting stronger refinery activity, tighter supply, and increased demand.
There is 'some support from the favorable margin environment associated with the refining sector. Product spreads remain relatively wide in all the regions,' said John Paisie, president of Stratas Advisors.
However, larger-than-expected builds in gasoline and diesel inventories capped price gains.
The U.S. central bank's latest snapshot of the economy, released on Wednesday, showed activity picked up in recent weeks. However, the outlook was 'neutral to slightly pessimistic' as businesses reported that higher import tariffs were putting upward pressure on prices.
China data showed growth slowed in the second quarter, but not by as much as previously feared, in part because of front-loading to beat U.S. tariffs, easing fears over the state of the world's largest crude importer's economy.
The data also showed that China's June crude oil throughput was up 8.5% from a year ago, implying stronger fuel demand.
Additionally, 'support has come from the positive news pertaining to some easing of trade tensions between China and the U.S. with President Trump lifting the ban on the sale of AI chips to China along with the announcement of a trade deal with Indonesia,' John Paisie added.
U.S. President Donald Trump offered fresh optimism about the prospects of a deal with Beijing on illicit drugs. He also hinted that a trade deal with India is very close, while an agreement could possibly be reached with Europe as well.
Trade tariffs could slow down global economic growth, and in turn dampen fuel demand, putting downward pressure on prices - REUTERS
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AI is already enabling personalised treatments, aiding in predictive diagnostics and improving patient care, and will see further inroads made in disease prevention and treatments. — Photo from ARTIFICIAL Intelligence (AI) has arrived in full force and will impact our future, transforming industries, the job market and our daily lives in ways that we haven't even thought of. The exciting possibilities that it poses challenge our imagination and give us hope for so many positive outcomes – in the fields of increased productivity, personalised healthcare and other innovative solutions. At the same time, AI has also raised our concerns about job displacement, data privacy and many ethical considerations. AI's integration into the various sectors of human endeavour, from manufacturing to finance, is already reshaping the way we work and live. Its continued development and presence (many call it 'intrusion') into our daily lives will require extremely careful management so that humans remain its masters to harness its myriad benefits and at the same time, mitigate its many potential risks and dangers. How will AI affect our future? AI-powered automation has already been used to streamline processes in various industries which has led to increased productivity and efficiency. In return, we have had reduced human errors and in cases of emergencies, autobots have been able to work around the clock without any breaks in between. The downside? Automation has meant the loss of jobs that previously were handled by humans. A drastic reduction in manpower needs spell doom for fast growing populations, especially those in India, China, and many Third World countries. There are five areas where I personally feel that AI will impact in a most positive way. They are revolutionising healthcare; transforming transportation; advancing agriculture; modernising finance; and reshaping retail trade. AI is already enabling personalised treatments, aiding in predictive diagnostics and improving patient care, and will see further inroads made in disease prevention and treatments. It is also driving improvements in autonomous vehicles, optimising traffic flow and advancing logistics in ways both accurately and expeditiously. In agriculture, AI has made strides in improving crop yields, managed environmental impact and optimized resource utilisation. It has also assisted in rendering ideas and statistical solutions for humans to further explore the new possibilities on gainful production systems. AI's use in the world of finance has assisted in fraud detection, algorithmic trading and in personalised financial advice. 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As AI becomes more pervasive by the day, it is up to our governments and organisations to establish appropriate regulations and governance frameworks to ensure its safe and ethical use. As the 'Godfather of AI, Hinton stresses the gravity of the urgent need for international cooperation and ethical safeguards. He has called for a global ban on autonomous AI weapons and a code of conduct to ensure that AI could not be exploited to spread misinformation, manipulate populations or develop dangerous levels of autonomy. AI, per se, holds immense potential to transform our future for the better, the greater good, but it also presents humankind significant challenges that require proactive management. We must address all the ethical concerns while fostering responsible development as we prepare our workforce for the changing landscape. With the right approach and a balanced mindset, we can use and harness the limitless power of AI to help us create a more prosperous, equitable, peaceful and harmonious future for us all. May God help us all if a day comes when the machines take total control. Amen. * The opinions expressed in this article are the columnist's own and do not reflect the view of the newspaper.
