
Oil Updates — crude climbs $1 as price drop triggers buying; oversupply worries weigh
SINGAPORE: Oil gained more than $1 per barrel on Tuesday, rebounding on technical factors and bargain hunting after a decision by OPEC+ to boost output sent prices down the previous session, although concerns about the market surplus outlook persisted.
Brent crude futures rose $1.15 to $61.38 a barrel by 9:23 a.m. Saudi time, the first time gain after six consecutive declines, while US West Texas Intermediate crude added $1.11 to $58.24 a barrel.
Both benchmarks had settled at their lowest since February 2021 on Monday, driven by an OPEC+ decision over the weekend to further speed up oil production hikes for a second consecutive month.
'Today's slight rebound in oil prices appears more technical than fundamental,' said Yeap Jun Rong, a market strategist at IG. 'Persistent headwinds including a pivotal shift in OPEC+ production strategy, uncertain demand amid US tariff risks, and price forecast downgrades are continuing to weigh on the broader price movement.'
Driven by expectations that production will exceed consumption, oil has lost over 10 percent in six straight sessions and dipped over 20 percent since April when US President Donald Trump's tariff shocks prompted increased bets on a slowdown in the global economy.
The return of Chinese market participants after a five-day public holiday since May 1 was seen supporting prices on Tuesday.
'China also reopened today, and being the largest importer, buyers would have likely jumped to secure oil at current low levels,' said Priyanka Sachdeva, senior market analyst at Phillip Nova.
Also lending some support was data showing a pick-up in services sector's growth in the US, the world's major oil consumer, as orders increased.
The Institute for Supply Management said on Monday its nonmanufacturing purchasing managers index increased to 51.6 last month from 50.8 in March. Economists polled by Reuters had forecast the services PMI dipping to 50.2.
The US Federal Reserve will likely leave interest rates unchanged on Wednesday as tariffs roil the economic outlook.
Barclays lowered its Brent crude forecast on Monday by $4 to $70 a barrel for 2025 and set its 2026 estimate at $62 a barrel, citing 'a rocky road ahead for fundamentals' amid escalating trade tensions and OPEC+'s pivot in its production strategy.
Goldman Sachs also lowered its oil price forecast on Monday by $2-3 per barrel, as they now expect another 400,000 barrels per day production increase by OPEC+ in July.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Saudi Gazette
4 hours ago
- Saudi Gazette
Saudi Arabia and Netherlands sign agreements with investments exceeding SR428 million
Saudi Gazette Report AMSTERDAM — Saudi Arabia and the Netherlands have signed a number of agreements and memoranda of understanding (MoU) with investments exceeding SR428 million in Amsterdam. The agreements were inked between a number of Saudi and Dutch companies with the aim to develop and localize modern technologies in the environmental, water, and agricultural fields. Saudi Deputy Minister of Environment, Water, and Agriculture Eng. Mansour Al-Mushaiti attended the ceremony of signing 27 agreements and MoUs during his current visit to the Netherlands from June 10 to 12 in the presence of a number of the Dutch government officials as well as senior executives and business leaders from the public and private sectors. The signing included a MoU between the Saudi National Program for the Development of the Livestock and Fisheries Sector and the Dutch company VigGuard to establish cooperation to localize livestock disease control research. MoUs were also signed between the National Center for Sustainable Agriculture Research and Development, the Dutch Greenhouse Alliance, the Dutch company Hoogendoorn, Hudson River Biotechnology, and Wageningen University, to launch initiatives in the fields of agricultural technology and research, and to establish capacity-building partnerships in the fields of agricultural innovation, greenhouse farming solutions, and green biotechnology. The partnerships also included the signing of a MoU between the National Agricultural Services Company and Delphi to support agricultural innovation. MoUs were also signed between the Makkah Region Development Authority, Van der Hoeven Projects for Protected Agriculture and Horticulture, and Horizon 11 to transfer and localize biotechnology. A MoU was signed between Al-Yasin Agricultural Company and the Cobret Experimental Center to establish a partnership worth up to one million euros to promote biotechnology in control and crop protection. Another MoU was signed between the Saudi Greenhouse Management and Agricultural Marketing Company and Plantae and Certhon with the aim of investing in localizing innovations in the agricultural sector. A memorandum of understanding was signed between the Lehaa Group of Companies for Trade and Agricultural Investment, the Dutch Royal HZPC Group, and the Gal Sahara Potato Production Company, with investments exceeding SR76 million. This will enhance potato production in the Kingdom, in addition to establishing a French fries factory equipped with the latest processing technologies. Eng. Mansour Al-Mushaiti also witnessed the signing of six MoUs between Dafa Agricultural Company and a number of companies specialized in the fields of vegetables, fruits, fertilizers, greenhouses, and software project supply, with investments exceeding SR292 million. It is worth noting that this visit comes within the framework of the plans and vision of the Ministry of Environment, Water, and Agriculture to enhance the global capacity of the Saudi agricultural sector, expand the production and export of local agricultural products, contribute to increasing the volume of trade between the Kingdom and the Netherlands, and strengthen international partnerships, in order to achieve the goals of the Kingdom's Vision 2030.


Saudi Gazette
6 hours ago
- Saudi Gazette
BD Saudi Arabia charts a value-driven healthcare future under new leadership
Becton Dickinson (BD) in Saudi Arabia today announced its reinforced commitment to the Kingdom's ambitious healthcare transformation under the leadership of its newly appointed Country General Manager, Omar Malabarey. With a distinguished career spanning public and private healthcare sectors, Malabarey brings a wealth of experience and a clear vision to drive BD's impact on the local healthcare ecosystem. Malabarey's appointment marks a pivotal moment for BD Saudi Arabia, as he aims to leverage BD's global legacy of innovation in medical technology to foster value-based healthcare solutions, cultivate strategic partnerships, and champion local talent development, all in strong alignment with Saudi Arabia's Vision 2030. "Joining BD is a natural continuation of my mission to elevate the healthcare ecosystem in the Kingdom," said Omar Malabarey. "My focus is on creating a long-lasting impact by delivering solutions that not only enhance patient care and safety but also contribute to the efficiency and modernization of the entire healthcare system." Internally, Malabarey is dedicated to cultivating a collaborative and empowering workplace culture, positioning BD as an employer of choice for Saudi talent. Externally, his priority is to elevate BD's corporate identity beyond its well-recognized products, establishing the company as a trusted partner in healthcare transformation. Central to BD's strategic approach are its Signature Programmes™️, which address three critical areas: Patient Safety, Healthcare Worker Safety, and Healthcare Efficiency. These initiatives are designed to empower hospitals across Saudi Arabia to implement best practices in infection control, optimize workflows, and ultimately improve outcomes for both patients and medical professionals. Highlighting Saudi Arabia as a strategic and pioneering market in digital healthcare, Malabarey emphasized the Kingdom's rapid progress towards a modern, efficient, and patient-centered healthcare model under Vision 2030 and the Health Sector Transformation Program. BD is actively contributing to this shift with smart medication management systems, pharmacy robotics, and digital health solutions designed to minimize human error and maximize care has significantly expanded its local presence, now employing approximately 170 professionals and operating through seven strategic distributors. Reinforcing its commitment to local development, BD recently launched the state-of-the-art BD Training Center in Riyadh in April, providing hands-on clinical and technical training for healthcare professionals and biomedical engineers. The company also hosted its inaugural BD Healthcare Summit, convening key stakeholders to discuss the future of AI, automation, and workforce development in collaborations underpin BD's commitment to the Kingdom. These include partnerships with STC and Mobily to explore digital health innovations, a pioneering collaboration with Al Mujtamaa Pharmacy, making it the first digitally enabled pharmacy in Saudi Arabia, and a partnership with the Saudi Nursing Association aimed at developing clinical competencies and supporting the healthcare ahead, Malabarey envisions BD as a long-term healthcare enabler in Saudi Arabia, deeply invested not just in growth but in meaningful impact. From supporting local workforce initiatives to driving best practices in clinical care, BD is poised to be a central player in the country's ongoing healthcare transformation.


Asharq Al-Awsat
7 hours ago
- Asharq Al-Awsat
Trump Touts ‘Done' Deal with Beijing on Rare Earths, Chinese Students
US President Donald Trump touted ties with China as "excellent" on Wednesday, saying the superpowers reached a deal after two days of talks aimed at preserving a truce in their damaging trade war. Trump said on his Truth Social platform that China would supply rare earth minerals and magnets -- vital elements for American industries -- while Washington would allow Chinese students to remain in US universities. His post came after top United States and Chinese negotiators announced a "framework" agreement late Tuesday following two days of marathon talks in London. "Our deal with China is done," Trump wrote, adding that the agreement was still "subject to final approval with President Xi (Jinping) and me." "President XI and I are going to work closely together to open up China to American Trade," he said in a second post. "This would be a great WIN for both countries!!!" US stock markets showed little enthusiasm despite Trump's statements, but major indexes edged higher in early trading. - 'Candid' talks - US Treasury Secretary Scott Bessent said Wednesday that it was possible to rebalance economic relations with China if Beijing proved a "reliable partner in trade negotiations." "If China will course-correct by upholding its end of the initial trade agreement we outlined in Geneva, and I believe after our talks in London they will, then the rebalancing of the world's two largest economies is possible," Bessent told lawmakers at the House Ways and Means Committee. The two sides agreed to reduce their tit-for-tat, triple-digit tariffs during talks in Geneva last month, but cracks appeared in the detente after Trump accused China of violating the deal. Washington was concerned at slower supplies of rare earths after Beijing in early April began requiring domestic exporters to apply for a license -- widely seen as a response to US tariffs. Rare earths are used in everything from electric vehicles to hard drives, wind turbines and missiles. US Commerce Secretary Howard Lutnick said in London on Tuesday that US measures imposed when rare earths "were not coming" would likely be relaxed once Beijing moved forward with more license approvals. On Truth Social, Trump said China will supply "full magnets, and any necessary rare earths" up front. Washington has infuriated Beijing by vowing to revoke the visas of Chinese students, a major source of revenue for US universities. On Wednesday, Trump said: "We will provide to China what was agreed to, including Chinese students using our colleges and universities." The US president also said that the United States applies 55 percent tariffs on Chinese goods -- a combination of his 30 percent additional levies this year and the rough average of pre-existing duties, a White House official said. He said Beijing charges 10 percent duties on US goods. The rates are the same as those that were previously agreed in the truce, which temporarily brought US tariffs down from 145 percent and those imposed by China from 125 percent. In a Chinese state media readout of the talks released Wednesday, Vice Premier He Lifeng, who headed Beijing's team in London, stressed the need for the two sides to strengthen cooperation in future dialogue. "As a next step, the two sides should... continuously enhance consensus, reduce misunderstandings and strengthen cooperation," He said, according to state broadcaster CCTV. Speaking to reporters in London, China International Trade Representative Li Chenggang earlier said: "Our communication has been very professional, rational, in-depth and candid."