Oil pares gains on possible US approval for Chevron to renew Venezuelan operations
Brent crude futures were up 26 cents, or 0.38 per cent, to US$68.77 a barrel by 1.14 pm CDT (1814 GMT). US West Texas Intermediate crude futures rose 44 cents, or 0.67 per cent, to US$65.69 per barrel.
Earlier in the session, WTI had been up more than a dollar and Brent crude came near that level.
'The news about Chevron being able to go back into Venezuela and get oil going again just took the knees out of the market,' said John Kilduff, partner at Again Capital LLC.
Kilduff said the market does not expect the Trump administration will open up Venezuela to other US oil companies.
'This is a unique one-off,' he said.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
Oil was stronger on news Russia was planning to cut petrol exports to all but a few allies and nations Mongolia, with which it has supply agreements.
'Russia looking to cut off petrol exports gave the market a boost,' said Phil Flynn, senior analyst with Price Futures Group. 'The market was looking for a reason to go higher.'
Early in the session, futures gained on the previous day's report of a US crude inventory draw and on hopes for a trade deal between the US and the European Union that would lower tariffs.
'The US crude inventory draw and the trade efforts are adding some support to prices,' said Janiv Shah, an analyst at Rystad.
On Wednesday, two European diplomats said the EU and the US were moving toward a trade deal that could include a 15 per cent US baseline tariff on EU imports and possible exemptions. This could pave the way for another major trade agreement following the Japan deal.
Also on Wednesday, US Energy Information Administration data showed crude inventories fell last week by 3.2 million barrels to 419 million barrels, far exceeding analysts' expectations in a Reuters poll for a 1.6 million-barrel draw.
Oil prices were also supported by a suspension of Azeri crude exports from the Turkish port of Ceyhan and a brief halt to loadings at Russia's main Black Sea ports which has since been resolved.
BP said organic chlorides were detected in some of the oil tanks in the terminal at Ceyhan, adding that oil loading continued from some of the tanks with chloride levels assessed to be within normal specifications, while export activities via the BTC pipeline also continued.
Traders will watch for further news on loadings from Ceyhan and Novorossiysk, which together make up around 2.5 per cent of global oil supply at 2.5 million barrels per day, according to Reuters calculations based on loading data from the region.
Russia and Ukraine held peace talks in Istanbul on Wednesday, discussing further prisoner swaps, though the two sides remain far apart on ceasefire terms and a possible meeting of their leaders.
'Next to watch would be the demand indicators as we are in the peak season and any upside or downside would impact refining margins,' Rystad's Shah added. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
17 minutes ago
- Business Times
South Korea exports rise at fastest in 7 months before higher US tariffs kick in
[SEOUL] South Korea's exports rose for the second straight month in July, beating market expectations on strong chip demand and shipments being moved forward ahead of higher US tariffs, which are expected to weigh in the second half of the year. Exports from Asia's fourth-largest economy, an early bellwether for global trade, rose 5.9 per cent from the same month last year to US$60.82 billion, trade data showed on Friday, higher than the 4.3 per cent increase in June and the strongest since December 2024. The figure beat a median 4.6 per cent rise forecast for July in a Reuters poll of economists, who also noted signs of front-loading shipments ahead of an Aug 1 deadline for higher US tariffs. President Donald Trump signed an executive order on Thursday imposing reciprocal tariffs ranging from 10 per cent to 41 per cent on US imports from dozens of countries and foreign locations. With South Korea, Trump announced a trade deal on Wednesday setting tariffs at 15 per cent, lower than a threatened 25 per cent but higher than the current 10 per cent, which officials, companies and economists cheered for reducing uncertainty over the trade environment. 'Despite the trade deal, demand is still expected to weaken from August as overall tariff rates will increase,' said Lee Jeong Hoon, an economist at Eugene Investment Securities. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'Demand for artificial intelligence, however, will continue to be strong, while that for automobiles is growing in non-US markets.' A separate business survey showed on Friday South Korea's factory activity contracted for the sixth straight month in July, as uncertainty over US tariffs weighed on output and orders. The trade-reliant economy grew at the fastest pace in more than a year in the second quarter, buoyed by rebounding consumer spending and a surge in exports driven by demand for technology. Exports of semiconductors jumped 39.3 per cent in July, the biggest annual increase since October 2024, while cars rose by a five-month high of 8.8 per cent on robust demand in non-US markets such as Europe. Ship exports surged 107.6 per cent. By destination, shipments to the US rose 1.4 per cent, after three straight months of declines, as growing technology demand offset the impact of Trump's tariffs on steel and auto parts. Exports to China fell 3.0 per cent, while those to the European Union rose 8.7 per cent. Imports rose 0.7 per cent in July to US$54.21 billion, compared with a gain of 4.3 per cent in June and 2.0 per cent expected by economists. The monthly trade balance stood at a surplus of US$6.61 billion, narrower than the previous month's US$9.08 billion, which was the biggest since September 2018. REUTERS
Asia News Network
21 minutes ago
- Asia News Network
US President Trump's trade deal may present geopolitical challenges for Indonesia: analysts
August 1, 2025 JAKARTA – A celebratory and hopeful tone has been raised over the United States' decision to lower Indonesia's trade tariff to 19 percent, but analysts have warned that the country may still face tricky situations ahead as nonaligned Jakarta works to rebalance ties with other key economic partners. Indonesia's ambition to be less reliant on volatile superpowers could be challenged by its new obligation to purchase more American goods, observers have added, who also warned that the decision to significantly lower trade barriers for Washington may ruffle feathers among other key partners if not managed properly. Countries around the world are wrapping up their trade negotiations with Trump ahead of his Aug. 1 deadline for enforcing his so-called 'reciprocal tariff' policy. Some have finalized the trade agreement in the past weeks, including the European Union, the United Kingdom, Japan and Vietnam. On July 15, US President Donald Trump announced a 19-percent tariff for Indonesia, significantly below the 32 percent level he threatened earlier. As part of the deal, Trump added that Indonesia agreed to purchase US$15 billion in oil and gas, $4.5 billion in agricultural products and 50 Boeing jets. Centre for Strategic and International Studies (CSIS) economist Dandy Rafitrandi suggested that the geopolitical repercussions have already appeared. 'I think, […] we can already tell that the [deal] carries quite a heavy weight because of its non-optional nature and other consequences,' he told The Jakarta Post on Wednesday. Indonesia was granted a lower levy at 19 percent following what Indonesian negotiators described as an 'extraordinary struggle' to reach a fairer deal with Trump. The 19-percent rate, which is the lowest Washington has extended to any country in Southeast Asia so far, may come at a cost, as Indonesia is required to commit to major US purchases and be willing to remove all nontariff barriers for US imports to grant further ease of access for American companies. Included in the list of nontariff barriers to be removed are import restrictions, licensing requirements on US remanufactured goods or parts and local content requirements. The government has so far welcomed the deal with a positive tone, with president Prabowo Subianto affirming his commitment to usher in a 'new era of mutual benefit between two great nations'. The Office of the Coordinating Economic Minister also hailed the deal as a 'huge win for Indonesia's labor-intensive industries', calling it a 'strategic achievement', as quoted in a statement issued earlier this month. Keeping everybody happy? But questions started to emerge over how Indonesia plans to fulfill its pledge to purchase more US goods given its limited fiscal space and longstanding partnerships with several countries over certain commodities. Concerns were also raised over Jakarta's nonaligned stance and growing ambition to deepen ties with alternative partners. Indonesia's obligation to, for example, purchase 50 Boeing planes from the US may consolidate the latter's position as its key aircraft supplier and reduce future orders from alternative companies such as French aircraft manufacturer Airbus. Provisions in the deal may make Indonesia more dependent on the US, making the agreement an obvious victory for Washington, according to international relations expert Ahmad Rizky M. Umar of Aberystwyth University. 'Indonesia has no choice but to buy these goods, which may cost more,' Ahmad said. 'This is also counterproductive to Jakarta's recent efforts to diversify its trading partners, including by finalizing the comprehensive economic partnership agreement with the EU [IEU-CEPA] earlier this month,' he went on to say, referring to the long-awaited deal with the EU to open wider market access. During its months-long negotiations with Washington, Indonesia, which has chosen to cooperate with the US, has at the same time intensified its efforts to strengthen its ties with alternative trading partners, seeking to buffer itself from the uncertainty of the US' increasingly unilateral trade moves. President Prabowo has traveled to at least 14 countries across the Middle East, Southeast Asia and Europe since Trump's tariff announcement in April, which observers say were efforts to intensify Jakarta's economic partnerships amid tariff uncertainties. Yet, as Indonesia becomes increasingly reliant on the US for trade, its alternative partnerships could face challenges because of shifting constellations in economic ties. CSIS economist Dandy compared the deal with Trump with the IEU-CEPA: 'It took the EU a decade to score a zero-tariff deal with Indonesia, while Trump took weeks.' 'We have also now relaxed local content requirements for US imports. Our other trade partners will also want the same perk, and it will be a challenge for Indonesia to keep everyone happy.'
Straits Times
an hour ago
- Straits Times
Codelco says worker dead, several injured after 'seismic event' at El Teniente mine
Sign up now: Get ST's newsletters delivered to your inbox FILE PHOTO: The logo of Codelco, the world's largest copper producer, is seen at their headquarters in downtown Santiago, Chile March 29, 2018. REUTERS/Ivan Alvarado/File Photo Chilean copper miner Codelco said on Thursday that one worker died at the Andesita project of its El Teniente mine after what it called a 'seismic event' around 5:30 p.m. local time. The company said in a statement it was looking for another five workers, and that nine workers had various injuries but were out of serious risk. Codelco said it immediately suspended activities in the affected area and started an investigation to determine the cause of the incident. El Teniente is the world's largest underground copper deposit and Codelco's flagship mine. REUTERS
