Oil prices recover slightly but US tariffs, OPEC downgrade weigh
Brent crude futures rose 19 cents, or 0.28 per cent, to US$68.83 a barrel as of 0037 GMT. US West Texas Intermediate crude ticked up 26 cents to US$66.83 a barrel, up 0.39 per cent.
The Organization of the Petroleum Exporting Countries (OPEC), in its 2025 World Oil Outlook published on Thursday, cut its forecasts for global oil demand in 2026 to 2029 because of slowing Chinese demand.
Global demand will average 106.30 million barrels per day (bpd) in 2026, OPEC said, down from 108.00 million bpd expected in last year's forecast.
US President Donald Trump on Thursday announced a 35 per cent tariff rate for goods imported from Canada, starting Aug 1, and said the United States planned to impose blanket tariffs of 15 per cent or 20 per cent on most other trade partners.
Earlier in the day, President Trump threatened punitive tariffs on Brazil, Latin America's largest economy, and laid out plans for duties on copper, semiconductors and pharmaceuticals.
The European Union is expected to propose a floating Russian oil price cap in a new sanctions package this week, after a fall in oil prices made the current cap irrelevant, according to EU diplomat sources on Thursday.
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The Star
26 minutes ago
- The Star
Is Philippines getting short end of US tariff stick? 19% rate slammed as ‘worst insult'
MANILA (SCMP): A new trade deal hailed by Philippine President Ferdinand Marcos Jnr as a 'significant achievement' has been slammed by critics at home as the 'worst insult' after Manila secured only a one percentage point tariff cut from Washington while granting American goods duty-free access. Marcos, the first South-East Asian leader to be hosted by President Donald Trump since his return to the White House, visited the US capital from Sunday to Tuesday for a series of talks centred on trade and security. The trip came as Manila sought to defuse tensions over Trump's sweeping 'Liberation Day' tariff policy, which had initially imposed a 17 per cent duty on Philippine exports in April before increasing it to 20 per cent earlier this month. The outcome – a 19 per cent tariff rate on Philippine goods alongside zero tariffs for US exports – was unveiled by Trump on his Truth Social account after holding a joint press conference at the White House. Marcos defended the result, insisting the concession was more significant than it appeared. 'Now, one per cent might seem like a very small concession. However, when you put it in real terms, it is a significant achievement,' he said, adding that the 19 per cent figure reflected the 'special relationship between the Philippines and the United States'. As part of the agreement, the Philippines would also scrap tariffs on American automobiles, Marcos said. The deal was expected to result in increased imports of soy, wheat and pharmaceutical products from the US – moves he said could help narrow the current trade deficit, which stood at US$4.9 billion in 2024. When asked whether the Philippines was 'getting the shorter end of the stick', given that the new rate was still higher than the 17 per cent imposed earlier this year, Marcos replied: 'Well, that's how negotiations go.' Deal slammed Imee Marcos, who chairs the Senate foreign relations committee and has become openly estranged from her brother, was scathing in her assessment. 'A mere one per cent reduction in tariff rates for Philippine goods while having zero tariffs for US goods certainly does not look like a win for the Philippines,' she said in a statement. The president's ally, Senator Panfilo Lacson, who was re-elected under the Marcos slate, issued a statement saying the new tariff rate 'is definitely not the most fair deal between decades-old friends or allies like the United States and the Philippines'. 'If I may add, it is the worst insult that a host can throw at his guest. It is time for us to look for other trade partners,' he said, referring to the fact that Marcos was invited for a state visit by Trump and had even stayed at the Blair House for the trade talks. The top-winning Akbayan Party list group criticised Marcos for signing such a 'lopsided' deal. 'To make matters worse, the supposed deal reportedly includes a zero tariff on imported US cars, a move that may be illegal under international trade rules. Such preferential treatment can only be granted through a formal free-trade agreement,' said party president Rafaela David. Jonathan Ravelas, managing director of eManagement for Business and Marketing Services, told This Week in Asia that he had expected a 'lower tariff rate of 17 per cent' –the rate which Trump had earlier imposed in April. The financial risk analyst said 'the imbalance' between a 19 per cent tariff rate for Philippine exports and a zero per cent rate for US exports 'undermines fair trade and places Philippine exporters at a competitive disadvantage. Reciprocity is key to sustainable bilateral trade'. He warned that a zero tariff rate on US imports could mean the Philippine market being flooded with cheaper American products, thereby threatening domestic industries. Ravelas cited electronics, garments and agricultural exports as 'most vulnerable'. He called on the government to cushion the impact by providing these sectors with 'export tax relief, market diversification support and trade adjustment assistance for displaced workers'. For Ronald Acoba, founder and chief investment strategist at Trading Edge Training & Consultancy, the modest concession is a consuelo de bobo – a Filipino term to denote mock consolation. Acoba, however, noted that the new rate put the Philippines 'on par' with the 19 per cent for Indonesia and 20 per cent for Vietnam. 'Additionally, our 19 per cent levy may be considered 'better' than Singapore's baseline 10 per cent rate since Singapore was consistently running a trade deficit with the US,' Acoba told This Week in Asia. Praise and pressure During their joint press conference at the White House, Trump praised Marcos as a 'tough negotiator' but also took a swipe at his predecessor Rodrigo Duterte, who had once been described as 'Asia's Trump'. Trump accused Duterte of 'maybe tilting toward poor China' and added: 'We untilted it very, very quickly … and I just don't think that would have been good for you.' In a statement issued as Marcos wrapped up his trip, the US embassy in Manila said the State Department had approved at least 3 billion pesos (US$60 million) in new foreign assistance to support Philippine energy, maritime and economic development initiatives. 'This is the US government's first announcement of new foreign assistance for any country since the Trump administration began its review and realignment of foreign assistance in January,' it noted. The embassy added that Secretary of State Marco Rubio intended to work with Congress to allocate an additional 825 million pesos to 'catalyse private sector development' in the Luzon Economic Corridor – a flagship project originally launched under former president Joe Biden and backed by both the US and Japan. The initiative aims to boost investment in transport, logistics, energy and semiconductors across northern Luzon. - South China Morning Post/ANN
The Sun
26 minutes ago
- The Sun
Trump offers tariff relief if EU opens market to US firms
WASHINGTON: US President Donald Trump stated on Wednesday that the United States could reduce threatened tariffs on European goods if the European Union grants better market access to American companies. The remarks came during an event focused on artificial intelligence, where Trump highlighted ongoing trade discussions with the EU. 'If they agree to open up the union to American businesses, then we will let them pay a lower tariff,' Trump said. He confirmed that serious negotiations are currently in progress. The US has been engaged in talks with the EU for weeks to avoid imposing a 30 per cent tariff on imports from the bloc, set to take effect on August 1. Meanwhile, German Chancellor Friedrich Merz and French President Emmanuel Macron presented a unified stance during discussions in Berlin. Both leaders indicated the EU's readiness to respond if negotiations with the US collapse. German government spokesman Stefan Kornelius noted that Merz and Macron agreed to retain additional trade measures as an option should talks fail. He added that both leaders are prepared to develop new strategies if needed. Kornelius also mentioned that Germany and France plan to coordinate closely with Italy and the European Commission as negotiations with Washington reach their final stages. - Bernama-dpa
Malaysian Reserve
34 minutes ago
- Malaysian Reserve
Trump says countries will face tariffs ranging from 15% to 50%
US President Donald Trump (picture) suggested that he would not go below 15% as he sets so-called reciprocal tariff rates ahead of an Aug. 1 deadline, an indication that the floor for the increased levies was rising. 'We'll have a straight, simple tariff of anywhere between 15% and 50%,' Trump said Wednesday at an AI summit in Washington. 'A couple of — we have 50 because we haven't been getting along with those countries too well.' Trump's comment declaring that the tariffs would begin at 15% represented the latest twist in his effort to impose duties on nearly every US trading partner, and the latest indication that Trump was looking to more aggressively impose the levies on exports from countries outside the small group that so far has been able to broker trade frameworks with Washington. Trump earlier this month said that more than 150 countries would receive a letter including a tariff rate of 'probably 10 or 15%, we haven't decided yet.' Commerce Secretary Howard Lutnick told CBS News on Sunday that small countries including 'the Latin American countries, the Caribbean countries, many countries in Africa' would have a baseline tariff of 10%. And at the first announcement of the tariffs in April, Trump unveiled a universal tariff of 10% on nearly every country. While Trump and his advisers initially expressed hopes of securing multiple deals, the president has been touting the tariff letters themselves as 'deals' and suggesting that he is uninterested in back-and-forth negotiations. Still, he has left the door open for countries to make agreements that could lower those rates. On Tuesday, Trump announced he was reducing a threatened 25% tariff on Japan to 15% in exchange for the country removing restrictions on some US products as well as offering to back a $550 billion investment fund. Other nations, including South Korea, India, and members of the European Union, are still pushing for an agreement before the heightened tariffs go into effect. On Wednesday, Trump said he would 'have a very, very simple tariff for some of the countries' because there were so many nations that 'you can't negotiate deals with everyone.' He said talks with the European Union were 'serious.' 'If they agree to open up the union to American businesses, then we will let them pay a lower tariff,' Trump said. –BLOOMBERG
