Oil falls $2 a barrel on worries about OPEC+ supply, US jobs data
Brent crude futures settled at $69.67 a barrel, down $2.03, or 2.83%. U.S. West Texas Intermediate crude finished at $67.33 a barrel, down $1.93, or 2.79%.
Brent finished the week with a gain near 6%, while WTI rose 6.29%.
Three people familiar with discussions among OPEC members and allied producers said the group may reach an agreement as early as Sunday to boost production by 548,000 barrels per day in September.
A fourth source familiar with OPEC+ talks said discussions on volume were ongoing and the hike could be smaller.
The U.S. Labor Department said the country added 73,000 jobs in July, lower than economists had forecast, raising the national unemployment rate to 4.2% from 4.1%.
"We can blame U.S. President Donald Trump with the tariffs or we can blame the Federal Reserve for not raising interest rates," said Phil Flynn, senior analyst with Price Futures Group. "It looks like the Fed misjudged their decision on Wednesday."
On Wednesday, the Fed voted to keep interest rates unchanged, drawing criticism from Trump and a chorus of Republican legislators.
Oil traders have focused for much of the week on the potential impact of U.S. tariffs, with tariff rates on U.S. trading partners largely set to take effect from next Friday.
Trump signed an executive order on Thursday imposing tariffs ranging from 10% to 41% on U.S. imports from dozens of countries and foreign territories that failed to reach trade deals by his Aug. 1 deadline, including Canada, India and Taiwan.
Partners that managed to secure trade agreements include the European Union, South Korea, Japan and Great Britain.
"We think the resolution of trade deals to the satisfaction of the market – more or less, barring a few exceptions – has been the key driver for oil price bullishness in recent days," said Suvro Sarkar at DBS Bank.
Prices were also supported this week by Trump's threats to impose 100% secondary tariffs on Russian crude buyers as he seeks to pressure Russia into halting its war in Ukraine. This has stoked concern over potential disruption to oil trade flows and the removal of some oil from the market.
On Thursday, JP Morgan analysts said Trump's threatened penalties on China and India over their purchases of Russian oil potentially put 2.75 million barrels per day (bpd) of Russian seaborne oil exports at risk. China and India are the world's second and third-largest crude consumers respectively.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
27 minutes ago
- Reuters
Texas Democrats seek to block redistricting vote by leaving state
Aug 3 (Reuters) - Democratic lawmakers in Texas said on Sunday they were leaving the state to deny Republicans the quorum needed to redraw the state's 38 congressional districts, a move sought to protect the Republicans' narrow U.S. House majority in next year's midterm elections. President Donald Trump has championed the redistricting plan, telling reporters he expects the effort to yield as many as five additional House Republicans. Republicans hold a narrow 220-212 majority in the House of Representatives, with three Democratic-held seats vacant after members' deaths. In a video shot in front of an airport, opens new tab, Democratic Representative James Talarico said the redistricting plan amounted to "rigging" the 2026 elections. "If you're seeing this video, my Democratic colleagues and I have just left our beloved state to break quorum and stop Trump's redistricting power grab," Talarico said in the video posted on X on Sunday. Several other Texas Democrats said on X they were headed to Illinois, whose governor is Democrat J.B. Pritzker. States are required to redistrict every 10 years based on the U.S. Census but the Texas map was passed just four years ago by the Republican-dominated legislature. While mid-cycle redistricting occasionally takes place, it is usually prompted by a change in power at the legislature. Republicans have pursued redistricting in a special legislative session that will also address funding for flood prevention in the wake of the deadly July 4 flash flooding that killed more than 130. Under the current lines, Republicans control 25 seats, nearly two-thirds of the districts in a state that went for Trump last year by a 56% to 42% margin. Redistricting experts have said the plan could backfire if Republicans try to squeeze too many seats out of what is already considered a significantly skewed map. Republican Governor Greg Abbott's office did not respond to a request for comment about the Democrats' move on Sunday.
Daily Mail
27 minutes ago
- Daily Mail
The American hotspot where billionaires are buying up 'trophy homes' as they ditch London
The ultra-wealthy are ditching their second homes in London and buying up luxury properties in glamorous Miami, a new report has found. Ultra high net worth (UHNW) individuals, people with a net worth of more than $30 million, make up an exclusive group with a population of around 480,000. Members of this elite group own an average of three properties per individual, and a report from the information services firm Altrata found that Miami is the leading city for them to purchase luxury second homes. 'Miami is the most popular second-home location in the US, and globally, with a total of 13,211 UHNW second-home owners,' according to Altrata's report, Residential Real Estate 2025: Spotlight on the World's Leading Markets for the Wealthy. Notably, the Billionaire Buyers in London mid-year 2025 survey conducted by Beauchamp Estates found that over 70 percent of wealthy sellers are ditching their second homes in the UK capital and heading to cities such as Miami. Miami real estate agents told the Daily Mail they have worked with numerous international clients buying trophy homes in their city. 'We've seen some interest from London-based buyers recently, many of whom are reallocating funds from the UK market into Miami, diversifying their holdings,' said Maria Kuzina, owner of Miami Luxury Real Estate. 'London buyers currently represent, I would say, around three to five percent of all international buyers in the luxury market.' Jay Batra of the Batra Real Estate Group said: 'Miami continues to attract a diverse range of international buyers. Colombians, Brazilians, Russians, and Canadians are among the largest groups of foreign nationals investing in second homes here, drawn by the city's vibrant lifestyle and unique real estate opportunities. 'Miami Beach has historically seen 70 to 75 percent of its homes owned as second or third properties by buyers from across the US and around the globe.' He said driving factors bringing the ultra-rich to The Magic City include the warm weather, sandy beaches and low taxes. 'Miami has experienced strong growth of its wealthy second-home population over the past five years,' Altrata's report said. 'The city has long been a popular location for wealthy buyers seeking an additional residence, attracted by Florida's favorable tax regime, warm climate and coastal setting.' Kuzina said her clients are drawn to Miami because 'it strikes a perfect balance between lifestyle and investment opportunities'. 'Miami remains a top choice for international buyers due to its year-round sunshine, tax advantages, waterfront lifestyle, and its growing status as a global luxury hub,' she added. 'Today's buyers seek high-end, move-in-ready properties with privacy, premium amenities, and architectural distinction. Branded residences are particularly appealing as they offer world-class design, luxury services, and strong resale value.' Miami real estate agents told the Daily Mail they have worked with numerous international clients buying trophy homes in their city Batra explained that his international clients are looking for properties on the water with ritzy amenities. 'Condo buyers are drawn to the stunning water views, prime locations, and vibrant lifestyle that Miami and Miami Beach offer, paired with the convenience of being steps from the beach,' he said. Miami at been at the epicenter of a condo crisis after the 2021 collapse of a condo building in Surfside led to a new law that requires condo buildings to undergo structural inspections and shore up reserves. This has meant that many HOAs have been hiking fees and doling out hefty special assessments to comply with the new rules, which has reduced demand for condos. 'In Brickell, the allure lies in luxurious high-rises with breathtaking views and top-tier amenities like pools, gyms, and more - all within close proximity to workplaces.' He added that buyers searching for houses rather than condos tend to look for properties with a type of longevity. 'For those searching for houses, priorities shift to spacious yards, waterfront properties, private pools, and a sense of privacy. Buyers also focus on neighborhoods with strong potential for long-term value and appreciation,' Batra said. 'Additionally, flexibility is key; they often seek homes that can be easily rented out for a few months to a year if needed.' Batra admitted that some buyers are wary of Florida's turbulent housing market due to soaring HOA fees, skyrocketing insurance costs, and in some cases, hefty special assessments imposed by homeowners' associations. 'Buyers, both local and international, are increasingly concerned about rising costs. High insurance premiums and common charges are climbing across the board, adding to the burden already posed by elevated interest rates,' Batra said. 'These combined expenses are making it more challenging to purchase and maintain homes.' He noted that some of his clients have opted to purchase their homes in all-cash to escape these burdens. 'However, I've observed a growing trend among cash buyers, who are stepping in to offset these monthly costs,' he said. 'In fact, the most recent transaction involved an all-cash buyer, reflecting the strong demand in this segment.'
BBC News
27 minutes ago
- BBC News
Democrats flee Texas to block Republican redistricting map backed by Trump
Democratic state lawmakers have fled Texas in an attempt to stop a vote on a new congressional map that would heavily favour map, unveiled by Texas Republicans earlier in the week and backed by President Donald Trump, contains redrawn districts that would help preserve the party's slim majority in the US House of Representatives of the 150-member Texas House must be present in order to hold a vote. Fifty-one Democratic lawmakers have fled to Chicago, denying Republicans the required said they plan to stay away for two weeks until the end of a special legislative session convened by Texas Republican Governor Greg Abbott to hold the vote. Each of the 51 lawmakers could face a $500 (£380) fine for each day they are away, and Texas Attorney General Ken Paxton, a Republican, had previously threatened to arrest legislators who break quorum. In a statement to media, Texas Democrats defended the move."We're not walking out on our responsibilities," said Texas state legislator and chairman of the Democratic caucus Gene Wu. "We're walking out on a rigged system that refuses to listen to the people we represent."The redrawn map could win Republicans five more congressional seats in areas where Trump had made gains during the 2024 presidential includes a redistricting of the Rio Grande Valley, as well as combining two Austin districts currently held by Democrats. In northern Texas, the new map would expand a district currently held by Democratic House representative Julie Johnson to include rural Republican strongholds. It would also redraw four Houston-area seats, including one held by Democratic congressman Al Green.
