Oil prices gain on geopolitical risks, inventory worries
Brent crude futures were up 31 cents, or around 0.5%, to $68.83 a barrel at 1203 GMT. U.S. West Texas Intermediate crude futures were up 61 cents, or 0.9%, at $66.99.
U.S. President Donald Trump has said letters notifying smaller countries of their U.S. tariff rates would go out soon, and has also alluded to prospects of a deal with Beijing on illicit drugs and a possible agreement with the European Union.
"Near-term prices (are) set to remain volatile due to the uncertainty over the final scale of U.S. tariffs and the resultant impact on global growth," said Ashley Kelty, an analyst at Panmure Liberum, adding that prices would likely settle lower in the medium term.
The oil market on Thursday was also reacting to a tightened inventory scenario, said John Evans, analyst at PVM Oil Associates.
Last week, the International Energy Agency said that oil output increases were not leading to higher inventories, which showed markets were thirsty for more oil.
"Oil thinking has been distracted from the Middle East, and the reminders of Israel's attacks into Syria and the drone attacks on oil infrastructure in Kurdistan are timely and once again add a little fizz to proceedings," Evans said.
Drone attacks on oilfields in Iraq's semi-autonomous Kurdistan region have slashed crude output by up to 150,000 barrels per day, two energy officials said on Wednesday, as infrastructure damage forced multiple shutdowns.
"For now, oil market indicators continue to suggest the physical market remains tight. But ongoing trade tensions could weigh on oil demand growth prospects and pose downside risks to prices," said UBS commodities analyst Giovanni Staunovo.
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North Wales Chronicle
24 minutes ago
- North Wales Chronicle
Japan's PM Ishiba says he will stay in office despite election loss
Mr Ishiba's ruling Liberal Democratic Party (LDP) and its junior coalition partner Komeito were three seats short of maintaining a majority in the 248-seat upper house in Sunday's vote. The coalition is now a minority in both houses of the Diet, or parliament, though the LDP is still the leading party. Mr Ishiba said he takes the result seriously but that his priority is to avoid creating a political vacuum and to tackle impending challenges, including the August 1 deadline for a tariff deal with the US. 'While I painfully feel my serious responsibility over the election results, I believe I must also fulfil my responsibility I bear for the country and the people so as not to cause politics to stall or go adrift,' Mr Ishiba said. 'Challenges such as global situation and natural disaster won't wait for a better political situation.' The prime minister said he hopes to reach a mutually beneficial deal and meet with US President Donald Trump. Sunday's vote comes after Mr Ishiba's coalition lost a majority in the October lower house election, stung by past corruption scandals, and his unpopular government has since been forced into making concessions to the opposition to get legislation through parliament. It has been unable to quickly deliver effective measures to mitigate rising prices, including Japan's traditional staple of rice, and dwindling wages. Mr Trump has added to the pressure, complaining about a lack of progress in trade negotiations and the lack of sales of US cars and American-grown rice to Japan despite a shortfall in domestic stocks of the grain. A 25% tariff due to take effect on August 1 has been another blow for Mr Ishiba.
Reuters
24 minutes ago
- Reuters
Yen firms after election even as uncertainty beckons
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Glasgow Times
28 minutes ago
- Glasgow Times
Ryanair boss considers increasing staff bonus to tackle excess baggage ‘scourge'
The airline currently pays staff around 1.50 euros (£1.30) for intercepting customers who are bringing bags on to the aircraft. It is reported that the bonus is capped at about 80 euros (£70) for each staff member per month. Ryanair wants to eliminate excess baggage from its flights (Peter Byrne/PA) Passengers are charged a fee of up to 75 euros (£65) for bringing luggage that is larger than they paid for while booking their journey. Ryanair currently includes a small carry-on bag – capped at a size of 40x20x25cm and weight of 10kg – with every ticket. Passengers must pay a fee if they want to bring larger luggage, or if they want to bring multiple bags. Ryanair boss Michael O'Leary said on Monday that summer fares would, on average, be the same rate as 2023 – but added that he expects a boost in profitability for the airline by 'controlling costs'. Members of the European Parliament are pushing for airlines to allow passengers to be allowed to bring on free an on-board personal item and small hand luggage. However, Mr O'Leary predicted the proposal will not come into law due to a lack of space. Speaking to the business news on RTE's Morning Ireland, he said: 'We're flying largely full flights, about half the passengers can bring two bags and the other half can only bring one – because that's all that fits in the plane. 'We're already struggling with that amount of baggage. 'That's one of the reasons we are so aggressive about eliminating the scourge of passengers with excess baggage.' Mr O'Leary said more than 99.9% of passengers comply with baggage rules, with 'sizers' located within the airport. He said: 'We are happy to incentivise our (staff) with a share of those excess baggage fees, which we think will decline over the coming year or two.' The chief executive added: 'It is about 1.50 euro per bag – and we're thinking of increasing it, so we eliminate it.' Meanwhile, Mr O'Leary predicted that US President Donald Trump will 'chicken out' of introducing increased tariffs for Europe on August 1. US President Donald Trump (Suzanne Plunkett/PA) Asked if he anticipated tariffs applying to Boeing aircraft being delivered to the airline, he said: 'Trump will probably chicken out again, I suspect the August 1 will get moved to September or October. 'We have taken delivery of five aircraft in the first quarter but no tariffs applied to those aircraft 'There is a risk of tariffs being introduced by the Europeans or the Americans in some tit-for-tat in August, September or October – but Boeing will have to pay those tariffs.' Mr O'Leary said Ryanair would work with Boeing to ensure no tariffs are applied to commercial aircraft, which he said would be bad for the manufacturer's exports to Europe as well as Airbus's sales to the US – as well as the Irish aircraft leasing industry. He added: 'There's increasing optimism, though, in Washington that commercial aircraft will be exempt from any tariffs – if Trump ever gets around to actually imposing tariffs.'
