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The National
a minute ago
- The National
Oil prices fall as US and Russia set to hold talks on Ukraine
Oil prices fell nearly 1 per cent on Monday morning as markets awaited the outcome of talks between the US and Russian leaders to end the war in Ukraine later this week in Alaska. Brent, the benchmark for two thirds of the world's oil, was down by 0.84 per cent at 11.26am UAE time to $66.03 a barrel, while West Texas Intermediate, the gauge that tracks US crude, was trading 0.99 per cent lower at $63.25 a barrel. US President Donald Trump announced last week that he would be meeting Russian President Vladimir Putin in Alaska on Friday, raising expectations of an end to the Ukraine war and a potential return of Russian crude into global markets. The latest announcement comes as the US continues to pile pressure on customers buying oil from Russia, in an effort to curtail Moscow's oil revenues. Last week, the US slapped India with 25 per cent additional tariffs for buying Russian oil. The 'attention is on Ukraine and optimism that there could be progress', said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. 'The ample supply and cloudy demand outlook support the bearish camp, yet any disappointment on the Ukraine front could rapidly reverse the latest decline and send the price of a barrel back above the $65 per barrel level.' Both Brent and WTI posted losses last week on expectations of more supply entering the market as US and Russia negotiated to end the more-than-three-year-old Ukraine war. Brent futures closed down by 4.4 per cent week-on-week on Friday at $66.6 per barrel, while WTI fell by 5.1 per cent to $63.9 per barrel. Oil is also under pressure as Opec+ members continued to boost supply. This month, Opec+ has agreed to increase its oil production by 547,000 barrels per day for September, as the alliance of oil producers led by Saudi Arabia and Russia unwind voluntary cuts introduced during the Covid-19 pandemic. The decision marks the sixth month in a row the group has raised output as it gradually restores 2.2 million barrels per day of supply that was withheld from the market. 'Oil has fallen over 10 per cent this year as Opec+ restores production faster than planned and slowing global growth clouds demand prospects,' Soojin Kim, research analyst at MUFG Bank, said. 'A peace deal could end sanctions on Russian oil, heightening the risk of a supply glut later in 2025.' Oil markets remained volatile this year amid Mr Trump's tariff plans and the Iran-Israel conflict. Oil prices started the year strongly. The closing price of Brent, the benchmark for two-thirds of the world's oil, peaked at more than $82 a barrel on January 15, while West Texas Intermediate, the gauge that tracks US crude, hit almost $79 per barrel on that day. However, demand concerns, a slowing global economy and less-than-stellar growth in China, the world's largest crude importer, have dampened crude prices this year.


Gulf Today
an hour ago
- Gulf Today
UAE hails Azerbaijan for Armenia peace deal
UAE President His Highness Sheikh Mohamed Bin Zayed Al Nahyan congratulated Ilham Aliyev, President of the Republic of Azerbaijan, on the recent signing of the historic peace agreement between Azerbaijan and Armenia. During a phone call, Sheikh Mohamed expressed his sincere hope for the agreement to usher in a new phase of cooperation between the two countries and enhance peace and stability in the Caucasus region for the benefit of all its peoples. Sheikh Mohamed affirmed that the UAE remains committed to supporting dialogue and diplomacy to foster stability and prosperity for all. For his part, Ilham Aliyev expressed his appreciation to Sheikh Mohamed the President for the UAE's concerted diplomatic efforts to strengthen peace, stability, and security regionally and globally. The two sides also discussed joint efforts to reinforce bilateral ties, particularly in the fields of economy and investment, as well as other areas that serve common interests and contribute to both countries' development-focused aims. Earlier, António Guterres, Secretary-General of the United Nations, has welcomed the agreement reached between Armenia and Azerbaijan, brokered by the United States and signed by Ilham Aliyev and Nikol Pashinyan. The Secretary-General commended the commitment of President Aliyev and Prime Minister Pashinyan to dialogue and confidence-building, and praised the efforts made by US President Donald Trump in facilitating the agreement. The European Union welcomed the US-brokered agreement reached between Armenia and Azerbaijan, describing it as a 'significant breakthrough' towards ending decades of conflict. In an official statement, the EU praised both parties and the US administration for this progress, calling for the swift implementation of the agreed steps, foremost among them the signing and ratification of a peace treaty. The statement, issued by High Representative for Foreign Affairs and Security Policy Kaja Kallas, said the move marks a decisive step towards the full normalisation of relations, based on mutual recognition of sovereignty and territorial integrity. It stressed that implementing the agreement would contribute to achieving lasting peace and shared prosperity in the region. 'The EU fully supports the Armenia-Azerbaijan normalisation process and has been working for years with both parties and our international partners to create the conditions for lasting peace.' WAM


Zawya
2 hours ago
- Zawya
Fed structure may be in flux, not just rates: Mike Dolan
(The opinions expressed here are those of the author, a columnist for Reuters) LONDON - Whatever happens at September's Federal Reserve meeting will pale in comparison to a wholesale rethinking of the U.S. central bank's design, a possibility stirred by Donald Trump's latest appointment. The president nominated White House advisor Stephen Miran to temporarily fill Adriana Kugler's vacant Fed board seat, reheating a debate about whether the Fed structure, its independence, and even its central role in the monetary economy should now become live questions. That may sound like a giant leap in a discussion that has so far centered largely on how quickly the Fed should lower interest rates, and numerous big hurdles certainly limit the potential for massive institutional change. For one, Miran, who has written about re-ordering the Fed voting system and appointment process and binding the central bank more closely to government thinking, still has to be confirmed by the Senate. While that process may be expedited, because he was already confirmed as a White House official, he would ostensibly only hold the post until Kugler's term formally ends in January. He would also only get one vote under the current system, and Trump has yet to name his pick to replace Chair Jerome Powell next May. But most Fed watchers think Miran is likely to be confirmed for the full board term eventually, even if he's not considered a candidate for the top job. And his appointment, the eventual new Fed Chair, along with Chris Waller, the current favorite to replace Powell when his leadership term ends in May, and fellow Trump appointee Michelle Bowman, would then give Trump a board majority. On monetary policy at least, the five rotating regional Fed presidents on the 12-person policymaking committee can still push back. That said, their views are likely in flux since last week's employment report, and markets expect interest rate cuts to resume next month regardless. Sowing the seeds of longer-term structural change would reside more clearly with the board itself. 'TEMPEST IN A TEAPOT?' The wider issue of rethinking Fed structure, its functioning and independence is a much harder nut to crack. Even if a Trump-dominated board opened the process, it would likely face considerable Congressional opposition and take some time. Many voices have been quick to downplay such speculation. Treasury Secretary Scott Bessent, who spoke just last month of the need to examine the entire institution, also told NBC this week that Trump has "great reverence" for the central bank and just "likes to work the referees". Former Fed officials, such as ex-New York Fed boss Bill Dudley, also think the institution and its independence will withstand Trump's repeated attacks on the current leadership. In an opinion piece on Bloomberg this week, Dudley wrote, "Don't be fooled by the drama. In terms of how the Fed manages the economy, it's mostly a tempest in a teapot." And yet the appointment of Miran - whose work also includes a radical rethink of U.S. trade policy and the controversial "Mar-a-Lago Accord" idea on cutting U.S. deficits and debt obligations - indicates that a wider Trump worldview is being injected into the Fed. For some critics, Trump's dramatic embrace of digital assets, crypto tokens and stablecoins is already an indication of a very real direction of travel that could transform the monetary world and banking system. Former International Monetary Fund chief economist Kenneth Rogoff wrote this week that Trump's stablecoin framework bears striking similarities to the free-banking era of the 1800s, when the United States did not have a central bank. "At the time, private banks issued their own dollar-backed currencies, often with disastrous consequences such as fraud, instability and frequent bank runs," Rogoff wrote on the Project Syndicate site. While similar problems are "bound to emerge" with stablecoins, particularly tax evasion, he added that top stablecoin issuers today are at least more transparent and better capitalized than their nineteenth-century cousins. What happens to the Fed's role in a potential world of private money, however, is a whole other question. Trump supporters regularly insist that his asides and off-the-cuff remarks are often taken too literally and that people catastrophize what ends up being fairly sensible plans. Yet dismissing Trump's intention to reshape American and global institutions has proven to be folly this year as well. The opinions expressed here are those of the author, a columnist for Reuters -- Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. Follow ROI on LinkedIn. Plus, sign up for my weekday newsletter, Morning Bid U.S. (by Mike Dolan; Editing by Marguerita Choy)