logo
Oil prices little changed as investors look ahead to OPEC+ meeting

Oil prices little changed as investors look ahead to OPEC+ meeting

Reuters11 hours ago
SINGAPORE, July 2 (Reuters) - Oil futures were little changed on Wednesday as investors are wary ahead of a meeting of major producers this week to determine output levels for August.
Brent crude was up 1 cent at $67.12 a barrel at 0124 GMT, while U.S. West Texas Intermediate crude fell 5 cents to $65.40 a barrel.
Demand expectations received a boost on Tuesday after a private-sector survey showed factory activity expanded in June in China, the world's biggest oil importer, analysts said.
Since Iran and Israel have halted attacks on each other following their 12-day conflict, Brent has traded between a high of $69.04 a barrel and low of $66.34 since June 25, as concerns of supply disruptions in the Middle East producing region have ebbed.
"Oil prices seem to be in a tight range as we've seen a reduction in geopolitical risk and nerves about what OPEC may do in regards to raising production," said Phil Flynn, senior analyst with the Price Futures Group.
Price have been kept in check by expectations that the Organization of the Petroleum Exporting Countries and its allies including Russia, know as OPEC+, will boost its August crude oil output by an amount similar to the outsized hikes agreed in May, June, and July.
Four OPEC+ sources told Reuters last week the group plans to raise output by 411,000 barrels per day next month when it meets on July 6.
The market is already seeing the results of the previous OPEC+ increases with Saudi Arabia, the world's biggest oil exporter, lifting shipments in June by 450,000 bpd from May, according to data from Kpler, its highest in more than a year.
In the U.S., crude oil inventories rose by 680,000 barrels in the past week, according to sources citing figures from the American Petroleum Institute. Official data from the Energy Information Administration is due Wednesday at 10:30 a.m. ET.
U.S. non-farm payrolls data due on Thursday will shape expectations around the depth and timing of interest rate cuts by the federal reserve in the second half of this year, said Tony Sycamore, analyst at IG.
Lower interest rates could spur economic activity which would in turn boost oil demand.
Investors are also watching trade negotiations ahead of U.S. President Donald Trump's tariff deadline of July 9. Trump on Tuesday said he is not thinking of extending the deadline.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Saudi sports investor Surj goes extra mile for $20m triathlon stake
Saudi sports investor Surj goes extra mile for $20m triathlon stake

Sky News

timean hour ago

  • Sky News

Saudi sports investor Surj goes extra mile for $20m triathlon stake

The sports investment arm of Saudi Arabia's sovereign wealth fund is buying a stake in the body which organises professional triathlons around the world. Sky News has learnt that Surj Sports Investment is in advanced talks about a deal to inject roughly $20m into the Professional Triathletes Organisation (PTO). A deal could be unveiled as part of a wider PTO funding round imminently, a source in the Midde East said on Wednesday. It will be the latest investment from Surj, which also owns stakes in the Professional Fighters League and the sports streaming platform DAZN. Previously known as SRJ, Surj is a subsidiary of Saudi's Public Investment Fund (PIF), which owns a controlling stake in Newcastle United Football Club. Surj's investment will come in addition to previously announced funding from Cordillera Investment Partners, which took a $10m stake earlier this year. Other investors in the PTO include the media behemoth Warner Brothers Discovery and Sir Michael Moritz, the technology industry veteran. Sky News reported on the triathlon body's plans to raise capital in the spring of last year. It has been working with Oakvale Capital, a London-based advisory firm, on the fundraising since then. This year's T100 Triathlon World Tour consists of nine races, with the next due to be staged in London next month. The World Championship Final will take place in Qatar in December. The PTO, which is partly owned by athletes, has embarked on a significant commercial overhaul in a bid to capitalise on growing sponsor and broadcast interest from around the world. In December 2022, it announced a fundraising - said to have brought in more than $30m - led by Divergent Investments, a private equity firm. As part of its efforts to accelerate the commercialisation of the sport, the PTO recruited Chris Kermode, the former Association of Tennis Professionals boss, as its chairman. "This is an exciting opportunity to modernise a sport and give these ultimate endurance athletes the opportunity to showcase their extraordinary talents, while being rewarded appropriately," Mr Kermode said at the time of the previous fundraising. Most frequently watched in Britain during the summer Olympic Games, professional triathlons consist of a 2km swim, 80km bike-ride and 18km run. The PTO is run by Sam Renouf, a former British international athlete, who was appointed as chief executive in 2019. Since then, it has secured substantial sponsorship deals with companies including Canyon and Garmin, the luxury watchmaker.

Indian rupee range-bound despite weaker US dollar, set to trail most Asian peers: Reuters poll
Indian rupee range-bound despite weaker US dollar, set to trail most Asian peers: Reuters poll

Reuters

time2 hours ago

  • Reuters

Indian rupee range-bound despite weaker US dollar, set to trail most Asian peers: Reuters poll

BENGALURU, July 2 (Reuters) - The Indian rupee will trade in a narrow range over the next six months as global risk-off sentiment slows capital inflows to a trickle, potentially offsetting gains from a weaker U.S. dollar, a Reuters poll of FX analysts showed. Despite the dollar index (.DXY), opens new tab falling nearly 11% so far this year, the rupee has remained largely stable. The Reserve Bank of India has been shoring up its reserves to near record levels to limit volatility and to meet dollar obligations when needed. Foreign portfolio investors have been net sellers of Indian assets this year. Most strategists in the June 30–July 2 Reuters poll said they did not expect the rupee to make any meaningful gains. This comes even as global investors sell American assets over concerns rising debt levels in the world's largest economy are unsustainable in the long run. In three months the rupee is forecast to be down around 0.1% from current levels at 85.75 per dollar. It is then expected to trade at 85.50 in six months and weaken marginally to 86.13 in a year, according to the median forecast of 41 FX strategists. "The overall trend for USD/INR should be downward, with the Fed cutting rates, the dollar index falling and possibly a breakthrough on the U.S. trade deal in the coming days," said Anil Bhansali, head of treasury at Finrex Treasury Advisors. "It's going to be a slow and steady journey for the rupee because the RBI is currently buying dollars to meet its liabilities." U.S. President Donald Trump said on Tuesday a trade deal could be reached with India. The rupee has been a laggard compared to most regional peers, down around 0.1% for the year. The Korean won, Thai baht, Malaysian ringgit and Singapore dollar have gained more than 5%. However, the RBI's recent policy stance shift to "neutral," signalling the end of its brief rate-cutting cycle, may help underpin the currency. "(Given) better growth prospects, with a lot of monetary and fiscal stimulus being front-loaded and the expectation India might end up benefiting on the trade front compared to peers, there is a case for the rupee to somewhat appreciate from where we are today," said Sakshi Gupta, principal economist at HDFC Bank. (Other stories from the July foreign exchange poll)

Rupee slips, volatility expectations unruffled by looming tariff deadline
Rupee slips, volatility expectations unruffled by looming tariff deadline

Reuters

time2 hours ago

  • Reuters

Rupee slips, volatility expectations unruffled by looming tariff deadline

MUMBAI, July 2 (Reuters) - The Indian rupee declined on Wednesday as the dollar nudged higher ahead of closely watched U.S. economic data, with investors focused on prospects for trade deals ahead of a July 9 deadline. The rupee closed at 85.7025 against the U.S. dollar, down 0.2% on the day. Asian currencies declined as well, led by the Malaysian ringgit, which fell 0.7%. The dollar index was up nearly 0.3% and hovering just shy of the 97 handle. Stronger-than-expected U.S. economic data released on Tuesday offered mild support to the greenback with investors now awaiting a key non-farm payrolls report on Thursday and developments on bilateral trade negotiations. Despite the looming trade deadline, the rupee's very near-tenor implied volatility, a gauge of future expectations, was hovering a tad below its three-month average, indicating that traders are not yet pricing in the possibility of sharp swings in the near-term. U.S. President Donald Trump has said he was not considering extending the deadline for countries to negotiate trade deals but expects an agreement will be reached with India. While Trump has ruled out an extension of the deadline, "markets are wary of taking this at face value given recent reversals," ING said in a note. "The prevailing view may be that global tariff threats peak before another last-minute reprieve," ING said. Analysts polled by Reuters expect the rupee to be largely rangebound over the next year, trailing Asian peers amidst sustained weakness in the dollar. In three months, the rupee is forecast to decline 0.1% from current levels to 85.75 per dollar. It is then expected to trade at 85.50 in six months and weaken marginally to 86.13 in a year, according to the median forecast of 41 FX strategists.

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