Oil steadies as OPEC+ output hikes counter Russia disruption concerns
The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, agreed on Sunday to raise oil production by 547,000 barrels per day for September, a move that will end its most recent output cut earlier than planned.
Brent crude futures were down 26 cents, or 0.4%, to $68.50 a barrel at 0800 GMT, while U.S. West Texas Intermediate crude was down 7 cents at $66.22. Both contracts fell by more than 1% on Monday to settle at their lowest in a week.
Trump on Monday again threatened higher tariffs on Indian goods over the country's Russian oil purchases. New Delhi called his attack "unjustified" and vowed to protect its economic interests, deepening a trade rift between the two countries.
Oil's limited move since then indicates that traders are sceptical a supply disruption will happen, said John Evans of oil broker PVM in a report.
He questioned whether Trump would risk higher oil prices, which "would be the inevitable outcome of penalising Russian energy customers".
India is the biggest buyer of seaborne crude from Russia, importing about 1.75 million bpd from January to June this year, up 1% from a year ago, according to data provided to Reuters by trade sources.
Trump's threats come amid renewed concerns about oil demand and some analysts expect faltering economic growth in the second half of the year.
JPMorgan said on Tuesday the risk of a U.S. recession was high. Also, China's July Politburo meeting signalled no more policy easing, with the focus shifting to structural rebalancing of the world's second-largest economy, the analysts said.
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Reuters
30 minutes ago
- Reuters
BP's big Brazil oil and gas find boosts prospects for Equinor, auction
RIO DE JANEIRO, Aug 5 (Reuters) - BP's (BP.L), opens new tab announcement on Monday of its largest global oil and gas discovery in 25 years in Brazil's offshore Santos basin bodes well for Equinor's ( opens new tab nearby interests and strong appetite for an October auction of oil blocks in the region. Discoveries nearly two decades ago in the region, defined by vast deepwater fields under a thick layer of salt below the ocean floor, turned Brazil into one of the world's biggest oil producers. BP's Bumerangue block, if it proves viable, would be a major discovery in part of the basin far from three huge fields run by state-run oil firm Petrobras , which produce most of Brazil's oil and gas: Tupi, Buzios, and Mero. Those three fields account for just over 70% of pre-salt production, which represents nearly 80% of Brazilian output, according to data from national oil and gas regulator ANP. The BP discovery, along with recent Petrobras finds in other parts of the Santos and Campos basins, shows the potential in the "fringes" of Brazil's pre-salt area, said Roberto Ardenghy, head of oil lobby group IBP. The October auction offering blocks in Santos and Campos basins has already drawn interest from 15 firms that have signed up with ANP. "The pre-salt is heating up," said geologist Pedro Zalan, who spent three decades working for Petrobras. The state-run oil producer holds many of the region's most promising areas, he added, but there is plenty of room for rivals. BP's discovery underscores the untapped potential of Santos even as Petrobras and U.S. oil majors are piling into an environmentally sensitive region off Brazil's northern coast, which the state firm calls its best bet to replenish reserves. "This does not take the spotlight from the Foz do Amazonas basin, where unlocking a new play would significantly change the future of the oil and gas industry in Brazil," said Flavio Menten, a research analyst at Rystad Energy. Lingering questions about BP's Bumerangue find include high carbon dioxide levels that could affect its economic viability, experts told Reuters. BP's head of production and operations, Gordon Birrell, told analysts on a Tuesday earnings call that he was "not particularly" worried about CO2 levels in the block. If confirmed, it could be "the biggest deep-water find since Buzios in 2010," said consultancy Wood Mackenzie in a report to clients, citing the Petrobras-run field on track to be Brazil's largest producer. The discovery is also drawing fresh attention to two blocks acquired by Equinor near Bumerangue, along with a larger BP block beside Bumerangue where it plans to drill next year. The blocks have "a very significant probability of containing oil," said Zalan, the former Petrobras geologist. While Equinor's acquisitions are near Bumerangue, they are outside of Brazil's pre-salt polygon, said Rystad's Menten, adding that the Norwegian firm has still not committed to exploratory drilling in the area. Equinor did not immediately reply to a request for comment.
BBC News
30 minutes ago
- BBC News
Zelensky thanks Trump for 'productive' talks ahead of ceasefire deadline
Ukraine's Volodymyr Zelensky has said he and Donald Trump discussed sanctions against Russia, defence cooperation and drone production ahead of a visit to Moscow by US envoy Steve Trump for "productive" talks on Tuesday, Zelensky claimed that Moscow was particularly "sensitive" to the prospect of has previously stated that if Russia fails to agree a ceasefire with Ukraine by Friday it will face hefty sanctions or see secondary sanctions imposed against all those who trade with is thought to be travelling to Russia tomorrow or Thursday and is expected to meet Vladimir Putin. The Kremlin has mostly skirted Trump's sanctions threat, though spokesman Dmitry Peskov noted last week that the Russian economy had "developed a certain immunity" to sanctions due to being under them for so long. Trump has also admitted that he did not know whether sanctions "bothered" Putin. The US president may be hoping that Russia's trading partners will be sufficiently inconvenienced by the tariffs that they will choose to pivot away from buying Moscow's oil - ultimately making a dent in the revenue the Kremlin needs to continue waging its war on Monday Trump said he would impose hefty new tariffs on India, a major buyer of Russian oil, accusing it of not caring "how many people in Ukraine are being killed by the Russian War Machine". The Kremlin said "attemps to force countries to cut trade relations with Russia" were "illegal".In his Telegram post Zelensky said he and Trump had also talked about the "increased brutality" of Russian strikes on Ukraine. The US president has previously referenced Moscow's repeated attacks on Ukrainian cities, signalling irritation that the bombings often follow "nice" phone conversations between himself and Putin. Only last February Zelensky was asked to leave the White House after a disastrous meeting in which the US president accused him of not being thankful enough for US aid and of "gambling with World War Three". The two men have gradually repaired their relationship. In July Trump said the US would sell "top-of-the-line weapons" to Nato members which would then pass them on to Kyiv - and this week it was announced that Denmark, Norway, the Netherlands and Sweden would be the first countries to buy weapons from the US under this scheme. Their combined contributions will amount to more than $1bn and will go towards air defence equipment and ammunition. Danish Defence Minister Troels Lund Poulsen said speed was "absolutely critical" and that Denmark would be willing to consider additional funding than three years on from Russia's full-scale invasion, Ukrainian cities continue to come under heavy bombardment and regular drone attacks. Over the last day six people were killed across eastern Ukraine, authorities said. Before taking office Trump repeatedly said he would be able to end the conflict within a day - and it was at his behest that Russia and Ukraine sat down for ceasefire talks for the first time last May. But the discussions failed to bring the two sides any closer to peace and the US president has appeared increasingly impatient with the lack of progress. Despite Trump looming deadline, Vladimir Putin last week poured cold water on any hopes of a swift, long-term ceasefire with Ukraine. Although he said he viewed talks with Kyiv "positively," he also noted that "all disappointments arise from inflated expectations".
Glasgow Times
an hour ago
- Glasgow Times
Palantir sees first billion dollars in quarterly sales amid US spending cuts
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