Oil prices climb on US trade optimism, drop in crude stockpiles
Brent crude futures gained 24 cents, or 0.4 per cent, to US$68.75 a barrel by 0032 GMT. US West Texas Intermediate crude futures climbed 25 cents, or 0.4 per cent, to US$65.50 per barrel.
Both benchmarks were little changed on Wednesday as markets monitored developments in US-European Union trade talks, following President Donald Trump's tariff deal with Japan. The agreement lowers duties on auto imports and spares Tokyo from new levies in exchange for a US$550 billion package of US-bound investment and loans.
"Buying was driven by optimism that progress in tariff negotiations with the US would help avoid a worst-case scenario," said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities.
"Still, uncertainty over US-China trade talks and peace negotiations between Ukraine and Russia is limiting further gains," he added, predicting WTI will likely remain range-bound between US$60 and US$70.
Two European diplomats said on Wednesday that the EU and the US are moving toward a trade deal that could include a 15 per cent US baseline tariff on EU goods and possible exemptions, potentially paving the way for another major trade agreement following the Japan deal.
On the supply side, US Energy Information Administration data showed US crude inventories fell last week by 3.2 million barrels to 419 million barrels, exceeding analysts' expectations in a Reuters poll for a 1.6 million-barrel draw.
Geopolitical tensions remained in focus.
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.
Separately, foreign oil tankers were temporarily barred from loading at Russia's main Black Sea ports due to new regulations, two industry sources said on Wednesday, effectively halting exports from Kazakhstan through a consortium partly owned by US energy majors.
The US energy secretary said on Tuesday that the US would consider sanctioning Russian oil to end the war in Ukraine. Meanwhile, the EU on Friday agreed its 18th sanctions package against Russia, lowering the price cap for Russian crude.
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The Star
25 minutes ago
- The Star
Three years of Marcos' presidency: A mix of promises achieved, still hanging
MANILA: President Ferdinand Marcos Jr. (pic) started his six-year presidency when the Philippines was still reeling from the challenges brought about by 'some factors of our own making' and those 'that are beyond our control.' But still, in his first State of the Nation Address at the Batasang Pambansa in 2022, he pointed out that 'the state of the nation is sound,' stressing that 'I know this in my mind, I know it in my heart, I know it in my very soul.' A year later, he maintained 'the new Philippines is now here,' indicating that the 'state of the nation is sound, and is improving.' As he said, the government has 'highly competent and dedicated workers.' This, as he had previously set out the plans he had to improve the economy, bring employment to people, recalibrate the educational system, boost agricultural production, improve healthcare and keep on with the social programmes for the poor. Last year, however, in his third address, he pointed out a hard lesson – that even though the Philippines has been considered among the best-performing economies in Asia, 'it is nothing to a Filipino,' especially those making do with whatever little they have. He called on everyone in government to always think of what is best for the country. But with only three years left, is Marcos close to delivering on his promises? took a look, and as he already stated in 2023, there are 'successes that we can lay claim to' and 'challenges that we continue to face.' P20/kilo of rice The promise of rice being sold at P20 (US$0.35 cents) a kilo was one of the promises made by Marcos that hooked Filipinos, considering that the high price of the grain has always been a serious concern for many. While a kilo of local and imported rice is still high at P38 to P68, the grain is sold at P20 in government outlets, which now operate in almost 100 locations. 9% poverty rate Marcos made a commitment to bring down the poverty rate to a single digit, or nine per cent, by the end of his six-year presidency from the staggering 13.2 per cent in 2021. Based on data from the Philippine Statistics Authority (PSA), poverty incidence slightly fell to 10.9 per cent in 2023, the second year of the Marcos administration, or from 3.5 million to 3 million. 6.5 to 8% GDP growth yearly One of the targets he laid out was the 6.5 per cent to 8 per cent annual expansion in gross domestic product (GDP) starting in 2023 until 2028, and a five to 7.5 per cent GDP growth in 2022. While the Philippines, as stated by the government itself, is still 'slightly far' from hitting the 6.5 per cent to eight per cent mark, GDP expanded to 5.7 per cent in 2024 from 5.5 per cent in 2023. 3% national government deficit to GDP ratio The national government deficit to GDP fell by 0.6 percentage points to 5.6 per cent in 2024 from 6.2 per cent in 2023, indicating a medium likelihood of achieving the three per cent target that Marcos set in 2022. But while the current 'pace of improvement' is a challenge, the PSA pointed out that the decrease, even though minimal, reflected a 'progress in fiscal consolidation.' Less than 60% debt-to-GDP ratio As the PSA pointed out, there is still a medium likelihood that the target of a 48 per cent to 53 percent debt-to-GDP ratio will be met by the end of the presidency of Marcos. This, even though data showed that the debt-to-GDP ratio slightly increased in 2024 by 0.6 percentage points to 60.7 per cent from 60.1 per cent a year before. 'Upper-Middle Income' status Marcos previously committed to achieving an upper-middle income status by 2024, however, the Philippines retained its classification as a lower-middle income country last year. Based on data from the World Bank, the Philippines recorded a gross national income of US$4,470 for every individual in 2024, US$26 short of the US$4,496 threshold required to attain the higher status. 2% to 4% inflation rate Inflation, which tracks changes in the cost of living based on movements in the prices of a specified basket of primary commodities, declined to 3.2 per cent in 2024 from six per cent in 2023. This was already within the government's target of two to four per cent by 2028, but the inflation rate continued to decline to 1.4 per cent in June 2025 from the record-high 6.4 per cent in July 2022. Higher revenue collection As stated by Marcos in his first address, 'tax administration reforms will be in place to increase revenue,' a promise he reiterated in 2023, 'to bolster public investments.' Last year, revenue collection reached P4.419 trillion, or 16.72 per cent, exceeding the government's target of 16.9 per cent to 17.3 per cent by 2028, the Bureau of Treasury said. Investments in public infrastructure and people's abilities Back in 2023, Marcos said, 'Investments in public infrastructure and in the capacity of our people—through food, education, health, jobs, and social protection—remain our top priority.' As of 2025, 63.2 per cent of the national budget was for economic and social services. However, this is lower than the 67.5 per cent in 2024, 66.7 per cent in 2023, and 69 per cent in 2022. Renewable energy 'When it comes to energy, renewable energy is the way forward. We are aggressively promoting renewables, so that it provides a 35 per cent share in the power mix by 2030, and then on to 50 per cent by 2040,' Marcos said. However, renewable energy still accounts for only 22 per cent of electricity generation, based on the latest data from the Department of Energy, which is now keeping a close watch on 'sleeping' renewable energy initiatives. New, stronger schools As Marcos promised to make learners more resilient, he said, 'our public schools and facilities are being increased and fortified,' pointing out that 'the shortage of classrooms and facilities is being addressed.' Last year, the Department of Education said 3,524 new classrooms were being constructed, but as of May 2025, the Philippines still has a backlog of 165,000 classrooms. Better healthcare system Marcos stated in 2023 that structural changes are in place to improve the healthcare system, stressing how 3,400 initiatives have been completed in 2022 to increase public health facilities, both in number and in capability. As of 2024, however, the Department of Health said there are only 0.5 hospital beds available for every 1,000 people when it should be about 1.5 beds for every 1,000 individuals. Employment When Marcos delivered his address in 2023, the employment rate was at 75.7 per cent, but he himself recognised the need to do more, especially for the remaining 4.3 per cent jobless, as well as the 11.7 per cent who are seeking better work. But while Marcos said the government's aggressive efforts to attract more investors is expected to create over 350,000 jobs, the unemployment rate was still 3.8 per cent in 2024, while the underemployment rate slightly increased to 11.9 per cent. Socialised housing To address the 6.5 million housing backlog, Marcos committed to constructing one million socialised housing units yearly. As he previously pointed out, at least 1.2 million units have been started since he assumed office. Earlier this year, however, Malacañang admitted failing to reach its target because of certain obstacles relating to construction and contracting, with only 12,731 housing units completed last year. Build, Better, More Marcos stated in 2023 that the government is expanding the already existing government infrastructure projects all over the country, resulting in a total of 207, based on data from the Department of Public Works and Highways. Infrastructure Flagship Projects, are worth US$176.7 billion, but as of 2025, only eight have been completed, while 70 are ongoing. Almost 30 have already been approved for implementation. 'We prefer local production' Last year, Marcos bragged about the two million metric tonnes of locally produced rice, the highest since 1987, while pointing out that local production will be given the highest priority as the government also works to bring down food prices. But even though the government is providing assistance to local farmers, it imported 4.8 million metric tonnes of rice in 2024. Food inflation, however, decreased to 4.5 per cent in 2024 from eight per cent in 2023. Irrigating new farmlands As Marcos himself said, 'this year, we will irrigate almost 45,000 hectares of new land, while giving back life to the irrigation of almost 38,000 hectares of land across the country. However, as of December last year, the National Irrigation Administration implied that the commitment is yet to be completed, saying that '[it has] plans to irrigate at least 45,000 hectares of new farmland.' Land reform He stated last year that in land reform, programmes and distribution of land titles to farmers are continuous, and based on the latest government data, 194,111 electronic titles covering 229,546 hectares of farmland have already been distributed. This translated to a 1,100-per cent increase. Bloodless drug war Marcos said his campaign against illegal drugs is 'bloodless,' pointing out that it adheres to the established '8 Es' of an effective anti-illegal drug strategy. 'Extermination was never one of them,' he said. But based on a monitoring made by the University of the Philippines Third World Studies Centre, 1,022 individuals have already been killed in the campaign against illegal drugs since July 2022. - Philippine Daily Inquirer/ANN
Malaysiakini
25 minutes ago
- Malaysiakini
EU: Anchor of stability amid global trade tensions
COMMENT | In a world where trade tensions are rising and protectionism is creeping back, the European Union is doubling down on its commitment to free trade and international cooperation. European Commission president Ursula von der Leyen put it plainly: 'Tariffs are taxes that only hurt businesses and consumers.' This straightforward message reflects the EU's firm belief that walls and barriers won't help anyone in the long run. The EU's robust legal framework, enforced by EU member states, the European Commission, and the Court of Justice, ensures that international trade follows clear, agreed-upon rules. These rules, grounded in the principles of the United Nations and the World Trade Organization, are not just about trade. They promote prosperity, cooperation and stability worldwide, including in the fast-growing and strategically vital Indo-Pacific region. While some countries might be tempted to retreat behind protectionist policies, the EU is keeping its doors open, especially towards Southeast Asia. This openness is based on a simple conviction: that fair, rules-based trade and investment are powerful engines for sustainable growth and development. This is exactly how peace and prosperity in the EU were built over the past decades. Now, this belief is driving a renewed effort to conclude an ambitious, comprehensive and balanced free trade agreement (FTA) with Malaysia. Partners in stability and prosperity The partnership between the EU and Malaysia, as well as with Asean, is built on trust, transparency, and a shared vision for peace, stability, and prosperity. And on mutual engagement, as evidenced by the renewed dynamics in our partnership with the visits of Prime Minister Anwar Ibrahim – also as Asean chair – to Brussels, Rome and Paris in the past months, as well as the visits to Kuala Lumpur by the Poland president, Denmark foreign minister, Finland trade minister and most recently the EU high representative and vice-president of the commission on the occasion of the 58th Asean Foreign Ministers Meeting. Stability and predictability are vitally important for business and the global economy. The recent relaunch of trade negotiations reflects our shared commitment to an open, rules-based international trade order – a principle Anwar has consistently advocated, and that both sides strongly uphold. The highly promising first round of EU-Malaysia trade negotiations has just concluded in Brussels, the substantive engagement from both sides signalling a fresh push to deepen economic ties. These ties are already significant: the EU is Malaysia's fourth-largest trading partner and second-largest source of foreign direct investment. For the EU, Malaysia ranks as its third-largest trading partner in Asean. But there's plenty of untapped potential, and the free trade agreement is key to unlocking it. By slashing tariffs and removing non-tariff barriers, the agreement would open up markets for goods, services, investment, and procurement flows. It would also provide clearer rules on intellectual property and digital trade - areas that are increasingly important in today's economic landscape. Freer trade also helps cushion the impact of global supply shocks by diversifying sourcing and reducing dependence on any single country or supplier. For consumers both in the EU and Malaysia, the benefits are tangible: lower prices, more choice, and greater supply security, especially in essential sectors like food, medicine, and technology. For Malaysian businesses, this means preferential and easier access to the EU's vast single market - the second-largest in the world - creating new opportunities, boosting competitiveness, and attracting high-quality investment. FTA to strengthen ties Ultimately, the FTA is more than just a commercial tool - it is a platform to shape a future-oriented, resilient relationship that reflects the shared ambitions of Malaysia and the EU for sustainable and inclusive growth. It will further strengthen the foundation of our relationship, built on trust and mutual benefit. In a time of growing trade tensions and geopolitical uncertainty, the EU's commitment to open markets and international rules provides an anchor of stability. As a predictable, transparent, reliable and open partner, the EU is ready to deepen its engagements with the like-minded. The renewed EU-Malaysia free trade talks highlight how cooperation, not confrontation, can pave the way for a more prosperous future for both regions and the global economy. RAFAEL DAERR is EU ambassador to Malaysia. This op-ed is also jointly written by 16 ambassadors of EU member states in Malaysia. The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
New Straits Times
an hour ago
- New Straits Times
Bursa Malaysia slightly firmer at midday on interest in certain heavyweights
KUALA LUMPUR: Bursa Malaysia ended the morning trading session marginally higher, driven by buying interest in selected heavyweight stocks, particularly in the construction and industrial products and services sectors. At 12.30pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.46 points or 0.29 per cent to 1,538.22, from Friday's close of 1,533.76. The benchmark index opened 4.29 points firmer at 1,538.05 and moved between 1,531.28 to 1,539.38 throughout the session. However, the broader market sentiment was slightly negative, with losers outpacing gainers 416 to 396, while 459 counters were unchanged, 1,238 untraded and 44 suspended. Turnover stood at 1.78 billion units worth RM992 million. Malacca Securities said sentiment on Wall Street has improved following recent progress in de-escalating the US-EU trade war, particularly with the new trade deal capping tariffs at 15 per cent. "We believe the positive sentiment may spillover towards stock on the local front, tracking Wall Street's rally. "Given Tenaga Nadiobal Bhd's capital expenditure rollout stretching until year-end and data centre packages expected to be announced over the next two in the second half of 2025," the firm added. Although the recent overnight policy rate cut may directly impact the net interest margin, Malacca Securities said the banking sector commands undemanding valuations. It said the sector is currently trading at an undemanding 10 times price-to-earnings (P/E) ratio, which is notably below its 10-year historical average of 12.2 times. Meanwhile, real estate investment trusts remain attractive given their premium yields over government-backed securities.
