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Mint
6 days ago
- Business
- Mint
Oil Extends Drop as Saudi Arabia Seeks More Major Output Hikes
(Bloomberg) -- Oil extended declines on signs Saudi Arabia is seeking another big production increase at next month's OPEC meeting, in a bid for market share that could worsen a glut expected later this year. Brent traded below $65 a barrel after losing 1.2% in the previous session, while West Texas Intermediate was under $63. The kingdom wants the Organization of the Petroleum Exporting Countries and its allies to continue to add at least 411,000 barrels a day of output in August and potentially September, according to people familiar with the matter. 'Once Saudi Arabia takes the lead in accelerating output increases, historical experience suggests that the market could face the risk of a price war, which would be highly unfavorable for oil prices,' said Gao Jian, an analyst at Qisheng Futures Co. In the US, crude inventories fell by 4.3 million barrels last week, the most since November, data from the Energy Information Administration showed. The drawdown was bigger than an earlier estimate by an industry body. Crude has fallen about 13% this year on fears trade wars will sap economic growth and energy demand. President Donald Trump has been calling for talks on tariffs with his Chinese counterpart Xi Jinping, who seems to be reluctant to go ahead with high-level negotiations at this stage. Still, oil is up for the week on relief that OPEC didn't go ahead with a bigger-than-expected output increase for July, and some metrics are pointing to near-term strength in the market. The prompt spread for Brent has widened compared with a month ago in a bullish backwardation structure, signaling tight supply. To get Bloomberg's Energy Daily newsletter in your inbox, click here. More stories like this are available on
Mint
15-05-2025
- Business
- Mint
Oil Falls a Second Day as Iran Signals Openness to Nuclear Deal
(Bloomberg) -- Oil fell for a second day following a report Iran is willing to forgo nuclear weapons in a deal with the US in exchange for sanctions relief. West Texas Intermediate slipped toward $62 a barrel, after declining 0.8% on Wednesday, when Brent closed near $66. Iran is ready to sign an agreement with certain conditions, NBC reported, citing Ali Shamkhani, a top adviser to the OPEC nation's supreme leader. Crude fell Wednesday after government data showed US stockpiles rose the most since March, ending a four-day rally that had seen them gain almost 10%. The advance had been driven by the trade truce between China and the US and President Donald Trump's increasingly hostile rhetoric on Iranian supply. Oil is still down by around 13% this year, and US producers have said they expect little change in prices before year-end. Increased flows from Iran would add to a potential glut later this year after the Organization of the Petroleum Exporting Countries and its allies last month began restoring supplies idled since 2022. The group added only 25,000 barrels a day in April, a fraction of the scheduled 138,000 barrels a day, according to a monthly report released Wednesday. The alliance will consider another output increase at a June 1 meeting. The International Energy Agency, which advises consuming nations and publishes forecasts that are more closely watched by oil traders than OPEC's, will release its latest estimates of supply and demand later on Thursday in Paris. To get Bloomberg's Energy Daily newsletter in your inbox, click here. More stories like this are available on
Mint
30-04-2025
- Business
- Mint
Oil Set for Historic April Selloff as Trade War Darkens Outlook
Oil headed for the worst April performance on record on signs that the US-led trade war is hurting economic growth and energy demand, and as an industry group flagged a rise in crude stockpiles. Global benchmark Brent — which fell toward $64 a barrel — has slumped by more than 14% this month, the largest loss for that period since the contract started trading in 1988. West Texas Intermediate was near $60 a barrel. Data later on Wednesday may confirm a slowdown in US economic growth, after figures showed that consumer confidence slumped to an almost five-year low. Nationwide commercial crude stockpiles, meanwhile, rose 3.8 million barrels last week, according to an estimate from the American Petroleum Institute, which also saw a modest climb at the key storage hub in Cushing, Oklahoma. Crude has been battered this month, touching a four-year low, as US President Donald Trump's sweeping trade levies — including on top importer China — have blunted the outlook for energy demand. At the same time, OPEC has been loosening output curbs, with JPMorgan Chase & Co. warning that the cartel may opt to accelerate planned supply increases at a meeting next week. Elsewhere, Russia's oil exports edged higher for a second week, with almost half of the tankers sanctioned in previous years now back hauling the producer's barrels. Crude flows from all Russian ports in the four weeks to April 27 rose to 3.26 million barrels a day, up by 1% from the previous week. To get Bloomberg's Energy Daily newsletter in your inbox, click here. With assistance from Yongchang Chin.
Mint
29-04-2025
- Business
- Mint
Oil Extends Drop as Trump's Trade War Hurts Outlook for Demand
Oil extended a drop as the global trade war hurt the outlook for demand, with data pointing to signs of strain in the US economy and China stepping up its pushback against the Trump administration's tariffs. Brent fell toward $65 a barrel, down for a second day, with West Texas Intermediate below $62. A widely-referenced gauge of US manufacturing weakened significantly, adding to signs of the drag from President Donald Trump's levies. Other data due this week will shed further light on conditions. China's top diplomat, meanwhile, warned countries against caving in to US tariff threats, highlighting the intense global divisions. Foreign Minister Wang Yi said appeasement would only embolden the 'bully' at a BRICS meeting, rallying the group of emerging-market nations to push back against US levies. Brent crude is on track for the largest monthly loss since 2021, with prices battered by Trump's rapid escalation of tariffs between the US and its trading partners, as well as OPEC plans to revive production. While many countries are entering into trade negotiations with Washington, Beijing has do far declined to engage. Geopolitics also remain tp the fore, with talks between Washington and Tehran that have the potential over time to see curbs on Iranian oil loosened. Discussions over the Islamic Republic's atomic activity are showing signs of progress, with Iran also pitching its sanctioned economy as an investment opportunity to the US. 'Weak economic data suggests downside risks for demand,' said ANZ Group Holdings analysts Brian Martin and Daniel Hynes in a note. The talks between Iran and the US are positive and do 'lower the risk of an escalation that would trigger additional US sanctions,' they said. While prices have dropped in April, underlying metrics indicate a still-tight market in the near-term. The spread between Brent's two nearest contracts has been widening in backwardation ahead of expiry, with the June contract trading at a premium over the July one. The measure is around the strongest in nearly three months. Elsewhere, most of Spain and all of Portugal were hit by the worst blackout in Europe in years, with several oil refineries in Spain forced to halt. Power is gradually being restored. To get Bloomberg's Energy Daily newsletter in your inbox, click here. This article was generated from an automated news agency feed without modifications to text. First Published: 29 Apr 2025, 10:08 AM IST
Mint
25-04-2025
- Business
- Mint
Oil Edges Up as Traders Eye Next Moves in US-China Trade Tumult
Oil edged higher in a day of listless trading as investors parsed conflicting messaging on the progress of trade talks between the US and China. West Texas Intermediate futures rose to settle near $63 a barrel, but still notched their third weekly loss in the past four. Chinese authorities are weighing removing additional levies on a number of products including ethane, according to people familiar with the matter, as economic costs mount for certain industries. Shares in China's top buyers of the fuel from the US jumped. Still, an agreement on trade between the US and China appears far off. President Donald Trump said Thursday that his administration was talking with China about trade, despite Beijing earlier denying the existence of negotiations and demanding that unilateral tariffs be revoked. The president later said that he wouldn't drop tariffs on China unless 'something substantial' is offered in return. Oil has dropped sharply this month on concerns that Trump's sweeping tariffs and retaliatory measures from trading partners including China will cripple economic activity and throttle energy demand. In an effort to reassure US oil firms, Energy Secretary Chris Wright said that the trade turmoil will be fleeting and that the administration fully supports more crude output. 'Our president is very clear and he wants lower energy prices,' Wright said during an interview with Bloomberg Television at an energy conference in Oklahoma City. Oil prices at $50 per barrel 'in today's world probably is not sustainable for our producers in this country.' The president 'wants American industry and American consumers to thrive,' he added. The OPEC alliance has added to bearish headwinds by ramping up idled oil production, stoking fears of an oversupply. The group will meet on May 5 to discuss its output plans for June. Still, some metrics are pointing to near-term strength in the oil market. The prompt spread for WTI has widened this month in a bullish backwardation structure, signaling tight supply. At the same time, top traders have been snapping up barrels that help set benchmark prices in different regions. To get Bloomberg's Energy Daily newsletter in your inbox, click here. With assistance from Alix Steel and David Wethe. This article was generated from an automated news agency feed without modifications to text. First Published: 26 Apr 2025, 01:34 AM IST
