Oil Prices Rebound on Trump's Threats to Buyers of Russian Crude - Jordan News

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Oil Prices Rebound on Trump's Threats to Buyers of Russian Crude Oil prices rose on Wednesday, recovering from a five-week low recorded the previous day, amid supply disruption fears following U.S. President Donald Trump's threats to impose tariffs on India over its purchases of Russian crude oil. اضافة اعلان By 03:30 GMT, Brent crude futures were up by 43 cents (0.6%) to $68.07 per barrel, while U.S. West Texas Intermediate (WTI) rose 40 cents (0.6%) to $65.56 per barrel. Market Uncertainty Over U.S. Sanctions Commodity strategists at ING stated last Thursday: "There's still a lot of uncertainty around whether the U.S. will implement secondary sanctions on buyers of Russian oil... and growing chatter in the market suggests attention could shift toward China's Russian oil imports." They added that if India halts its purchases due to tariff threats, "The market could absorb the loss of that supply," but warned that the bigger risk would be if other buyers also begin to shun Russian crude. Investor Sentiment and India's Role Yuki Takashima, economist at Nomura Securities, commented: 'Investors are assessing whether India will reduce its Russian crude imports in response to Trump's threats, which could tighten supply. However, it remains to be seen if that will actually happen.' He added: 'If India's imports remain stable, WTI is likely to stay within the $60–$70 range for the rest of the month.' OPEC+ Production Boost On Sunday, OPEC and its allies (OPEC+) agreed to increase oil output by 547,000 barrels per day for September, a move that will end the latest round of production cuts earlier than planned. OPEC+ produces about half of the world's oil and has cut output for several years to support the market, but this year has seen a series of rapid production increases. U.S. Pressure on India and Supply Risks The U.S. is pressing India to halt Russian oil imports as Washington seeks leverage to pressure Moscow into a peace deal with Ukraine. Such moves may disrupt global supply flows as Indian refiners seek alternatives, and Russian crude gets redirected to new buyers. On Tuesday, Trump again threatened higher tariffs on Indian goods over its oil trade with Russia, saying the move could come within 24 hours. He also suggested that lower energy prices could pressure Russian President Vladimir Putin to end the war in Ukraine. India Responds to Tariff Threats New Delhi called Trump's threats 'unwarranted' and vowed to protect its economic interests, further intensifying the trade dispute between the two countries. U.S. Oil Inventory Data Supportive Takashima of Nomura noted that U.S. oil inventory data—from the world's largest oil consumer—provided support for oil prices. According to figures from the American Petroleum Institute (API) cited on Tuesday, U.S. crude oil inventories fell by 4.2 million barrels last week. This is a much larger drop than the 600,000-barrel decline expected in a Reuters poll for the week ending August 1.
The U.S. Energy Information Administration (EIA) is scheduled to release its official weekly inventory data on Wednesday.

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Jordan News

2 hours ago

Jordan News

Dollar Continues to Decline Amid Concerns Over U.S. Economy - Jordan News

Dollar Continues to Decline Amid Concerns Over U.S. Economy The U.S. dollar continued its decline against major currencies on Thursday, as expectations grew that the Federal Reserve would cut interest rates and concerns mounted over the influence of partisan politics on key American institutions. اضافة اعلان Markets are now anticipating the release of initial jobless claims data, following last week's disappointing non-farm payroll figures that weighed heavily on the dollar. Meanwhile, the euro received a boost ahead of anticipated talks next week aimed at ending the war between Russia and Ukraine. The British pound remained steady ahead of the Bank of England's monetary policy announcement, with markets widely expecting another interest rate cut. Last week, President Donald Trump dismissed the official responsible for labor data, which he disapproved of. Attention has now shifted to his nominations to fill an upcoming vacancy on the Federal Reserve Board of Governors, as well as candidates for the next Fed Chair. 'All of this points to increasing political risks surrounding the U.S. dollar,' said Tony Sycamore, market analyst at IG. 'And on top of that, we have weak data coming in.' He added that any progress toward ending the war in Ukraine 'would be a positive driver for the euro.' The U.S. dollar index, which measures the currency's performance against a basket of six major counterparts, held steady at 98.133 after falling 0.6% in the previous session. The greenback was little changed against the Japanese yen, trading at 147.35 yen. The euro rose 0.1% to $1.1671.

Higher US tariffs kick in for dozens of trading partners

Jordan Times

4 hours ago

Jordan Times

Higher US tariffs kick in for dozens of trading partners

WASHINGTON - The United States began charging higher tariffs on dozens of trading partners Thursday, in a major escalation of President Donald Trump's drive to reshape global commerce in America's favor. Shortly before the new levies kicked in, the United States separately announced it would double tariffs on India to 50 percent and hit many semiconductor imports from around the world with a 100-percent levy. As an executive order signed last week by Trump took effect, US duties rose from 10 percent to levels between 15 per cent and 41 per cent for a list of trading partners. Many imports from economies including the European Union, Japan and South Korea now face a 15-per cent tariff, even with deals struck with Washington to avert steeper threatened levies. But others like India face a 25-per cent duty -- to be doubled in three weeks to 50 per cent -- while Syria, Myanmar and Laos face staggering levels at either 40 percent or 41 per cent. Switzerland's government, which failed to convince Trump not to impose a stinging 39-percent tariff, was set to hold an extraordinary meeting later Thursday. Taking to his Truth Social platform just after midnight, Trump posted: "IT'S MIDNIGHT!!! BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!" The latest wave of "reciprocal" duties, aimed at addressing trade practices Washington deems unfair, broadens the measures Trump has imposed since returning to the presidency. 'No charge' On the eve of his latest salvo, he doubled planned duties on Indian goods to 50 per cent, citing New Delhi's continued purchase of Russian oil. The new levy -- up from 25 per cent now -- would take effect in three weeks. The Federation of Indian Export Organisations called the move a "severe setback for Indian exports, with nearly 55 per cent of our shipments to the US market directly affected." Trump's order also threatened penalties on other countries that "directly or indirectly" import Russian oil, a key revenue source for Moscow's war in Ukraine. Washington has already separately stuck tariffs on sector-specific imports such as steel, autos, pharmaceuticals and chips. Trump said Wednesday he also planned an "approximately 100 per cent tariff" on semiconductor imports, but with "no charge" for companies investing in the United States or committed to do so. Shares in Taiwanese chip-making giant TSMC surged as Taipei said it would be exempt, but some other Asian manufacturers took a beating. Companies and industry groups warn that the new levies will severely hurt smaller American businesses, while economists caution that they could fuel inflation and weigh on growth in the longer haul. With the dust settling on countries' tariff levels, at least for now, Georgetown University professor Marc Busch expects US businesses to pass along more of the bill to consumers. 'This will matter' An earlier 90-day pause in these higher "reciprocal" tariffs gave importers time to stock up, he said. But although the wait-and-see strategy led businesses to absorb more of the tariff burden initially, inventories are depleting and it is unlikely they will do this indefinitely, he told AFP. "With back-to-school shopping just weeks away, this will matter politically," said Busch, an international trade policy expert. The tariff leaves lingering questions for partners that have negotiated deals with Trump recently. Tokyo and Washington, for example, appear at odds over key details of their trade pact, in particular on when lower levies on Japanese cars will take place. Generally, US auto imports now face a 25-per cent duty under a sector-specific order. Toyota has cut its full-year profit forecast by 14 per cent because of the tariffs. Japan and the United States also appear to differ on whether the "reciprocal" tariffs of 15 per cent on other Japanese goods would be on top of existing levies or -- like the EU -- be capped at that level. China and the United States meanwhile currently have a shaky truce in their trade war but that is due to expire on August 12. Chinese exports to the United States tumbled 21.7 per cent last month, official data showed on Wednesday, while those to the European Union jumped 9.2 per cent and to Southeast Asia by 16.6 per cent. New fronts Meanwhile, the EU is seeking a carveout from tariffs for its key wine industry. In a recent industry letter addressed to Trump, the US Wine Trade Alliance and others urged the sector's exclusion from tolls, saying: "Wine sales account for up to 60 percent of gross margins of full-service restaurants." Trump has separately targeted Brazil over the trial of his right-wing ally, former president Jair Bolsonaro, who is accused of planning a coup. US tariffs on various Brazilian goods surged from 10 per cent to 50 per cent Wednesday, but broad exemptions including for orange juice and civil aircraft are seen as softening the blow. Still, key products like Brazilian coffee, beef and sugar are hit.

Jordan News

7 hours ago

Jordan News

Tariff-driven inflation fears are driving gold prices higher again - Jordan News

Mohannad Abbas hadadin GM of Jokins Center for Strategic Studies, an expert, strategic and economic analyst, said that inflation fears driven by the tariffs imposed by Trump as of today pushed up gold prices, which today reached 3470 dollars per ounce, as they overshadowed any action by the US Federal Reserve to reduce interest next September. اضافة اعلان Trump has targeted the BRICS countries by imposing tariffs on Brazil and India by 50%, targeting the latter one because of the sale of Russian oil, which was imposed by the blockade, and recalled Trump's words months ago that he would impose 100% tariffs on the BRICS countries if they decided not to deal in dollars. On the other hand, Trump threatened to raise semiconductor tariffs by 100% on some countries if they don't invest in the United States. All these measures Trump will bring the global economy back to the danger circle, the specter of inflation is now in control if Trump continues with his decisions, and it will lead to damage to financial markets, and the continued resort to safe haven gold, which is likely to reach 4000 dollars per ounce by the end of the year.