Oil falls as IEA raises supply forecast, investors await US-Russia meeting
Brent crude futures fell 45 cents, or 0.7 per cent, to $65.67 a barrel at 0831 GMT, while U.S. West Texas Intermediate crude futures edged down 53 cents, or 0.8 per cent at $62.64.
Both contracts settled lower on Tuesday.
Trump and Putin are due to meet in Alaska on Friday to discuss ending Russia's war in Ukraine, which has shaken oil markets since February 2022.
"Oil prices drifted lower on expectations that Friday's summit would not result in additional sanctions on Russia, ensuring the country's oil continues to flow predominantly to the south and east," said PVM Oil analyst Tamas Varga in a note.
The International Energy Agency on Wednesday raised its forecast for oil supply growth this year following OPEC+'s decision but lowered its demand forecast due to lacklustre demand across the major economies.
Long-term support, however, came from OPEC's updated monthly report on global supply and demand, Varga said, which raised its global oil demand forecast for next year and trimmed its estimate for growth in supply from the United States and other producers outside the wider OPEC+ group, pointing to a tighter market.
Investors also awaited further cues after an industry report showed U.S. crude stockpiles climbed last week.
Crude inventories in the United States, the world's biggest oil consumer, rose by 1.52 million barrels last week, market sources said, citing American Petroleum Institute figures on Tuesday. Gasoline inventories dropped while distillate inventories gained slightly.
Analysts polled by Reuters expect today's Energy Information Administration report to show crude inventories fell by about 300,000 barrels last week.
The EIA on Tuesday in its Short Term Energy Outlook (STEO) forecast Brent prices to average less than $60 per barrel in the fourth quarter, which would be the first quarter with average prices that low since 2020, stating that growth in the global oil supply would surpass growth in demand for petroleum products.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
2 minutes ago
- CNA
Israel's finance minister announces settlement plan to 'bury' idea of Palestinian state
TEL AVIV: Israeli far-right Finance Minister Bezalel Smotrich announced work would start on a long-delayed settlement that would divide the West Bank and cut it off from East Jerusalem, a move his office said would "bury" the idea of a Palestinian state. The Palestinian government, allies and campaign groups condemned the scheme, calling it illegal and saying the fragmentation of territory would rip up any internationally backed peace plans for the region. Standing at the site of the planned settlement in Maale Adumim on Thursday (Aug 14), Smotrich said Prime Minister Benjamin Netanyahu and US President Donald Trump had agreed to the revival of the E1 development, though there was no immediate confirmation from either. 'Whoever in the world is trying to recognise a Palestinian state today will receive our answer on the ground. Not with documents nor with decisions or statements, but with facts. Facts of houses, facts of neighbourhoods," Smotrich said. Israel froze construction plans at Maale Adumim in 2012, and again after a revival in 2020, because of objections from the US, European allies and other powers who considered the project a threat to any future peace deal with the Palestinians. The move could further isolate Israel, which has watched some of its Western allies condemn its military offensive in Gaza and announce they will recognise a Palestinian state. Palestinians fear the settlement building in the West Bank - which has sharply intensified since the 2023 Hamas attack on Israel that led to the Gaza war - will rob them of any chance to build a state of their own in the area. In a statement headlined "Burying the idea of a Palestinian state", Smotrich's spokesperson said the minister had approved the plan to build 3,401 houses for Israeli settlers between an existing settlement in the West Bank and Jerusalem. In Maale Adumim, Smotrich told Reuters the plan would go into effect on Wednesday. Breaking the Silence, an Israeli rights group established by former Israeli soldiers, criticised Smotrich, accusing him of encouraging West Bank settlement activity while the world's attention was on the Gaza war. "This land grab and settlement expansion will not only further fragment the Palestinian territory, but will further entrench apartheid," it said. Nabil Abu Rudeineh, the Palestinian president's spokesperson, called on the United States to pressure Israel to stop settlement building. "The EU rejects any territorial change that is not part of a political agreement between involved parties. So annexation of territory is illegal under international law," European Commission spokesperson Anitta Hipper said during a press briefing. Norwegian Foreign Minister Espen Barth Eide said the move showed that Israel "seeks to appropriate land owned by Palestinians in order to prevent a two-state solution". Qatar, which has mediated between Hamas and Israel in efforts to secure a ceasefire in Gaza, condemned Smotrich's actions as a "blatant violation of international law". HOUSE BUILDING "IN A YEAR" Peace Now, which tracks settlement activity in the West Bank, said there were still steps needed before construction. But if all went through, infrastructure work could begin within a few months, and house building in about a year. 'The E1 plan is deadly for the future of Israel and for any chance of achieving a peaceful two-state solution. We are standing at the edge of an abyss, and the government is driving us forward at full speed," Peace Now said in a statement. Palestinians were already demoralised by the Israeli military campaign which has killed more than 61,000 people in Gaza, according to local health authorities, and fear Israel will ultimately push them out of that territory. About 700,000 Israeli settlers live among 2.7 million Palestinians in the West Bank and East Jerusalem. Israel annexed East Jerusalem in a move not recognised by most countries but has not formally extended sovereignty over the West Bank. The UN and most world powers say settlement expansion has eroded the viability of a two-state solution by fragmenting Palestinian territory. The two-state plan envisages a Palestinian state in East Jerusalem, the West Bank and Gaza, existing side by side with Israel. Israel cites historical and biblical ties to the area and says the settlements provide strategic depth and security. Most of the global community considers all settlements illegal under international law. Israel rejects this interpretation, saying the West Bank is "disputed" rather than "occupied" territory. Britain, Canada, Australia and New Zealand imposed sanctions in June on Smotrich and another far-right minister who advocates for settlement expansion, accusing both of them of repeatedly inciting violence against Palestinians in the West Bank.
CNA
2 minutes ago
- CNA
Israel's Smotrich announces settlement plan to 'bury' idea of Palestinian state
TEL AVIV: Israeli far-right Finance Minister Bezalel Smotrich announced work would start on a long-delayed settlement that would divide the West Bank and cut it off from East Jerusalem, a move his office said would "bury" the idea of a Palestinian state. The Palestinian government, allies and campaign groups condemned the scheme, calling it illegal and saying the fragmentation of territory would rip up any internationally backed peace plans for the region. Standing at the site of the planned settlement in Maale Adumim on Thursday (Aug 14), Smotrich said Prime Minister Benjamin Netanyahu and US President Donald Trump had agreed to the revival of the E1 development, though there was no immediate confirmation from either. 'Whoever in the world is trying to recognise a Palestinian state today will receive our answer on the ground. Not with documents nor with decisions or statements, but with facts. Facts of houses, facts of neighbourhoods," Smotrich said. Israel froze construction plans at Maale Adumim in 2012, and again after a revival in 2020, because of objections from the US, European allies and other powers who considered the project a threat to any future peace deal with the Palestinians. The move could further isolate Israel, which has watched some of its Western allies condemn its military offensive in Gaza and announce they will recognise a Palestinian state. Palestinians fear the settlement building in the West Bank - which has sharply intensified since the 2023 Hamas attack on Israel that led to the Gaza war - will rob them of any chance to build a state of their own in the area. In a statement headlined "Burying the idea of a Palestinian state," Smotrich's spokesperson said the minister had approved the plan to build 3,401 houses for Israeli settlers between an existing settlement in the West Bank and Jerusalem. In Maale Adumim, Smotrich told Reuters the plan would go into effect on Wednesday. Breaking the Silence, an Israeli rights group established by former Israeli soldiers, criticised Smotrich, accusing him of encouraging West Bank settlement activity while the world's attention was on the Gaza war. "This land grab and settlement expansion will not only further fragment the Palestinian territory, but will further entrench apartheid," it said. Nabil Abu Rudeineh, the Palestinian president's spokesperson, called on the United States to pressure Israel to stop settlement building. "The EU rejects any territorial change that is not part of a political agreement between involved parties. So annexation of territory is illegal under international law," European Commission spokesperson Anitta Hipper said during a press briefing. Norwegian Foreign Minister Espen Barth Eide said the move showed that Israel "seeks to appropriate land owned by Palestinians in order to prevent a two-state solution". Qatar, which has mediated between Hamas and Israel in efforts to secure a ceasefire in Gaza, condemned Smotrich's actions as a "blatant violation of international law". HOUSE BUILDING "IN A YEAR" Peace Now, which tracks settlement activity in the West Bank, said there were still steps needed before construction. But if all went through, infrastructure work could begin within a few months, and house building in about a year. 'The E1 plan is deadly for the future of Israel and for any chance of achieving a peaceful two-state solution. We are standing at the edge of an abyss, and the government is driving us forward at full speed," Peace Now said in a statement. Palestinians were already demoralised by the Israeli military campaign which has killed more than 61,000 people in Gaza, according to local health authorities, and fear Israel will ultimately push them out of that territory. About 700,000 Israeli settlers live among 2.7 million Palestinians in the West Bank and East Jerusalem. Israel annexed East Jerusalem in a move not recognised by most countries but has not formally extended sovereignty over the West Bank. The UN and most world powers say settlement expansion has eroded the viability of a two-state solution by fragmenting Palestinian territory. The two-state plan envisages a Palestinian state in East Jerusalem, the West Bank and Gaza, existing side by side with Israel. Israel cites historical and biblical ties to the area and says the settlements provide strategic depth and security. Most of the global community considers all settlements illegal under international law. Israel rejects this interpretation, saying the West Bank is "disputed" rather than "occupied" territory. Britain, Canada, Australia and New Zealand imposed sanctions in June on Smotrich and another far-right minister who advocates for settlement expansion, accusing both of them of repeatedly inciting violence against Palestinians in the West Bank.
CNA
32 minutes ago
- CNA
LA28 to allow venue naming rights in first for Olympics; Comcast, Honda debut deals
LOS ANGELES :Los Angeles 2028 Olympic and Paralympic Games will, for the first time in Games history, allow venue naming rights, organizers said on Thursday, unveiling Comcast and Honda as inaugural partners in a move aimed at boosting commercial revenues. The pilot program, developed with the International Olympic Committee (IOC), will let qualifying LA28 partners retain existing venue names during the Games and buy additional marketing assets. It also opens naming rights for up to 19 temporary venues to worldwide Olympic partners and LA28 sponsors, while standard "clean venue" rules continue for non-partner sites. Comcast will lend its name to the Comcast Squash Center at Universal Studios, where squash will make its Olympic debut on the Courthouse Square backlot. Honda Center in Anaheim will become the first arena to keep its name during an Olympic competition, hosting indoor volleyball. "Anytime you're the first to do something in the context of the Olympics, it's a big deal," LA28 chair Casey Wasserman told Reuters. "It's a big opportunity for us and it's a big statement of support from the IOC. We think it will be a really powerful platform and opportunity in the commercial sector, so we're really excited." Wasserman said the deals introduce a "new commercial model" for the Olympic movement. The IOC traditionally enforces strict branding rules during the Games, masking corporate signage at competition venues. He noted money from selling venue naming rights would be in addition to the overall sponsorship revenue target of $2.5 billion, which LA28 calls the largest commercial revenue raise in sports. "We've been very conservative, so we have none of this revenue in our budget so any revenue is upside," he said. "Having said that, we think it could be significant. It's a really powerful platform for branded partners of ours to engage with us and also with the globe, because it's part of the broadcast. The reach is really stunning." From a practical perspective, the potential for SoFi Stadium and arena to maintain their names during the Games will help fans navigating the city. "As a pure matter of wayfinding, it's actually an important piece of the puzzle," he said. Comcast, which holds U.S. broadcast rights through NBC and Peacock, said it would support LA28 "across our entire company," including coverage and the squash showcase. Honda, which in June was named the Games automotive sponsor, said its long-backed Anaheim arena would "step onto the international stage to power Olympic dreams," according to Ed Beadle, a vice president at American Honda Motor Co.
