Latest news with #MukeshSahdev
CNBC
14-05-2025
- Business
- CNBC
Oil prices hold near two-week highs on trade war reprieve, weaker dollar
Oil prices held near two-week highs in early trading on Wednesday, supported by an agreement between the U.S. and China to temporarily lower their reciprocal tariffs and a falling U.S. dollar. Brent crude futures inched down 10 cents, or 0.15%, by 0008 GMT to $66.53 a barrel. U.S. West Texas Intermediate (WTI) crude slipped 7 cents, or 0.11%, to $63.60. Both benchmarks climbed more than 2.5% in the previous session. The dollar index, which measures the greenback against a basket of currencies, fell 0.67% on Tuesday after data showed U.S. inflation was lower than expected. A weaker dollar makes oil less expensive for holders of other currencies, increasing demand. The two largest economies on Monday agreed to pause their trade war for at least 90 days, with the U.S. cutting tariffs to 30% from 145% and China slashing duties on U.S. imports to 10% from 125%. Prices had climbed more than $1.60 a barrel on Tuesday following the agreement, settling up nearly 3%. Rystad energy analysts said in a note that the agreement had "eroded some demand side pessimism," though cautioning that there could be lingering impact from the tariffs despite the rollbacks. The market was supported by reported declines in U.S. gasoline and distillate inventories, a sign of resilient fuel demand. Gasoline inventories fell by 1.4 million barrels and distillate stocks fell by 3.7 million barrels, market sources said on condition of anonymity, citing American Petroleum Institute figures on Tuesday. However, crude stocks rose by 4.3 million barrels. Analysts polled by Reuters expected gasoline stocks to fall by 600,000 barrels, distillate inventories to rise by about 100,000 barrels and crude stocks to fall by 1.1 million barrels. Official weekly inventory data from the U.S. Energy Information Administration is due on Wednesday at 10:30 a.m. EDT (1430 GMT). The market is watching U.S. President Donald Trump's trip to the Gulf. He kicked off the visit Tuesday with an appearance at an investment forum in Riyadh, where he announced that the U.S. would lift longstanding sanctions on Syria and secured a $600 billion pledge from Saudi to invest in the U.S. Rystad Energy's global head of commodity markets Mukesh Sahdev said that preventing oil price spikes over the summer travel season will be a key part of the president's agenda on the trip, adding that the U.S. could take advantage of lower prices to buy more Middle East crude for its Strategic Petroleum Reserve. "The big unknown for the market is how U.S. actions related to Iran, Russia and Venezuela will result in supply disruptions or additions," Sahdev said. The U.S. on Tuesday imposed fresh sanctions on some 20 companies it said were helping Iran's Armed Forces General Staff and its front company, Sepehr Energy, send Iranian oil to China. The sanctions come following a fourth round of U.S.-Iran talks in Oman aimed at addressing disputes over Iran's nuclear program.
New Straits Times
14-05-2025
- Business
- New Straits Times
Oil prices hold near two-week highs on trade war reprieve, weaker dollar
BEIJING: Oil prices held near two-week highs in early trading on Wednesday, supported by an agreement between the US and China to temporarily lower their reciprocal tariffs and a falling US dollar. Brent crude futures inched down 10 cents, or 0.15 per cent, by 0008 GMT to US$66.53 a barrel. US West Texas Intermediate (WTI) crude slipped 7 cents, or 0.11 per cent, to US$63.60. Both benchmarks climbed more than 2.5 per cent in the previous session. The dollar index, which measures the greenback against a basket of currencies, fell 0.67 per cent on Tuesday after data showed US inflation was lower than expected. A weaker dollar makes oil less expensive for holders of other currencies, increasing demand. The two largest economies on Monday agreed to pause their trade war for at least 90 days, with the US cutting tariffs to 30 per cent from 145 per cent and China slashing duties on US imports to 10 per cent from 125 per cent. Prices had climbed more than $1.60 a barrel on Tuesday following the agreement, settling up nearly 3 per cent. Rystad energy analysts said in a note that the agreement had "eroded some demand side pessimism," though cautioning that there could be lingering impact from the tariffs despite the rollbacks. The market was supported by reported declines in US gasoline and distillate inventories, a sign of resilient fuel demand. Gasoline inventories fell by 1.4 million barrels and distillate stocks fell by 3.7 million barrels, market sources said on condition of anonymity, citing American Petroleum Institute figures on Tuesday. However, crude stocks rose by 4.3 million barrels. Analysts polled by Reuters expected gasoline stocks to fall by 600,000 barrels, distillate inventories to rise by about 100,000 barrels and crude stocks to fall by 1.1 million barrels. Official weekly inventory data from the US Energy Information Administration is due on Wednesday at 10:30 a.m. EDT (1430 GMT). The market is watching US President Donald Trump's trip to the Gulf. He kicked off the visit Tuesday with an appearance at an investment forum in Riyadh, where he announced that the US would lift longstanding sanctions on Syria and secured a US$600 billion pledge from Saudi to invest in the US Rystad Energy's global head of commodity markets Mukesh Sahdev said that preventing oil price spikes over the summer travel season will be a key part of the president's agenda on the trip, adding that the US could take advantage of lower prices to buy more Middle East crude for its Strategic Petroleum Reserve. "The big unknown for the market is how US actions related to Iran, Russia and Venezuela will result in supply disruptions or additions," Sahdev said. The US on Tuesday imposed fresh sanctions on some 20 companies it said were helping Iran's Armed Forces General Staff and its front company, Sepehr Energy, send Iranian oil to China. The sanctions come following a fourth round of US-Iran talks in Oman aimed at addressing disputes over Iran's nuclear programme.
Business Recorder
14-05-2025
- Business
- Business Recorder
Oil prices hold near two-week highs on trade war reprieve, weaker dollar
BEIJING: Oil prices held near two-week highs in early trading on Wednesday, supported by an agreement between the U.S. and China to temporarily lower their reciprocal tariffs and a falling U.S. dollar. Brent crude futures inched down 10 cents, or 0.15%, by 0008 GMT to $66.53 a barrel. U.S. West Texas Intermediate (WTI) crude slipped 7 cents, or 0.11%, to $63.60. Both benchmarks climbed more than 2.5% in the previous session. The dollar index , which measures the greenback against a basket of currencies, fell 0.67% on Tuesday after data showed U.S. inflation was lower than expected. A weaker dollar makes oil less expensive for holders of other currencies, increasing demand. The two largest economies on Monday agreed to pause their trade war for at least 90 days, with the U.S. cutting tariffs to 30% from 145% and China slashing duties on U.S. imports to 10% from 125%. Prices had climbed more than $1.60 a barrel on Tuesday following the agreement, settling up nearly 3%. Rystad energy analysts said in a note that the agreement had 'eroded some demand side pessimism,' though cautioning that there could be lingering impact from the tariffs despite the rollbacks. The market was supported by reported declines in U.S. gasoline and distillate inventories, a sign of resilient fuel demand. Gasoline inventories fell by 1.4 million barrels and distillate stocks fell by 3.7 million barrels, market sources said on condition of anonymity, citing American Petroleum Institute figures on Tuesday. However, crude stocks rose by 4.3 million barrels. Analysts polled by Reuters expected gasoline stocks to fall by 600,000 barrels, distillate inventories to rise by about 100,000 barrels and crude stocks to fall by 1.1 million barrels. Official weekly inventory data from the U.S. Energy Information Administration is due on Wednesday at 10:30 a.m. EDT (1430 GMT). The market is watching U.S. President Donald Trump's trip to the Gulf. He kicked off the visit Tuesday with an appearance at an investment forum in Riyadh, where he announced that the U.S. would lift longstanding sanctions on Syria and secured a $600 billion pledge from Saudi to invest in the U.S. Crude oil climbs more than $1 on tariff cuts Rystad Energy's global head of commodity markets Mukesh Sahdev said that preventing oil price spikes over the summer travel season will be a key part of the president's agenda on the trip, adding that the U.S. could take advantage of lower prices to buy more Middle East crude for its Strategic Petroleum Reserve. 'The big unknown for the market is how U.S. actions related to Iran, Russia and Venezuela will result in supply disruptions or additions,' Sahdev said. The U.S. on Tuesday imposed fresh sanctions on some 20 companies it said were helping Iran's Armed Forces General Staff and its front company, Sepehr Energy, send Iranian oil to China. The sanctions come following a fourth round of U.S.-Iran talks in Oman aimed at addressing disputes over Iran's nuclear programme.
Wall Street Journal
14-05-2025
- Business
- Wall Street Journal
Oil Edges Lower; Trump's Visit to Middle East in Focus
0008 GMT — Oil edges lower in the early Asian session, with the market's focus on U.S. President Trump's visit to the Middle East. 'Trump's Middle Eastern tour is timed very well, as it is just ahead of Memorial Day weekend, when prices at the pump will play a key role in driving demand,' Rystad Energy's Mukesh Sahdev says in an email. 'Preventing any oil price spikes in the summer will likely remain central to the president's agenda,' the senior vice president adds. Front-month WTI crude oil futures are down 0.1% at $63.59/bbl; front-month Brent crude oil futures are 0.2% lower at $66.52/bbl. (
Yahoo
06-05-2025
- Business
- Yahoo
Big Oil Isn't Backing Down at $60 Oil
Big Oil majors have no plans to scale back their budgets despite oil prices softening and more barrels poised to hit the market. That may sound reckless in a bearish environment, but it's anything but. With demand picking up in Asia and OPEC+ preparing to unwind production cuts faster than expected, Exxon, Chevron, Shell, and TotalEnergies are digging in—ready to pump more, not less. ExxonMobil reported a decline in net profits for the first quarter to $7.7 billion, down from $8.2 billion a year ago. Chevron's earnings fell more sharply to $3.8 billion from $5.4 billion, and Shell saw a 28% drop in Q1 profit. TotalEnergies reported a more modest 5% dip. Still, none of these companies flagged any spending cuts or strategic retreats. In fact, they're doing the opposite: raising production targets and sticking to growth plans. TotalEnergies saw its oil and gas output rise 4% in Q1, boosted by ramp-ups in Brazil, the U.S., Malaysia, and Argentina. Exxon is targeting a 7% production increase for the year. Chevron is aiming for 9%. Even Shell, while more cautious, continues aggressive buybacks and refuses to blink on capex. The only supermajor to tweak its plans was BP—and even that move came under pressure from Elliott Management, the activist investor calling for deeper cuts and a clearer strategic direction. BP's Q1 results showed weaker-than-expected earnings, sagging cash flow, and rising net debt—leaving it as the outlier in an otherwise unflinching now comes the real test: OPEC+ is reportedly planning to dump as much as 2.2 million barrels per day back into the market by November. According to sources cited by Bloomberg, the Saudis have lost patience with serial quota-busters Iraq and Kazakhstan. But there's a twist—many of the companies responsible for Kazakhstan's overproduction are Western majors: Chevron, Exxon, Shell, and TotalEnergies. That's right—Big Oil is now part of the cartel's internal compliance headache. 'The presence of U.S. companies like ExxonMobil and Chevron in Kazakhstan could play a key role in driving the supply growth,' said Rystad Energy analyst Mukesh Sahdev. 'This raises questions about the potential for U.S. backing to pressure OPEC+ into adding more barrels to the market.' Which begs the real question: is this shaping up to be a good old-fashioned supply war? There are certainly signs. China's crude imports hit a 20-month high in March, jumping to over 12 million barrels per day. That surge reversed the slump seen in January and February and underscored Beijing's appetite for bargain barrels. India, too, boosted imports from Russia to a nine-month high. When prices fall, the world's biggest buyers step in. That's precisely what Big Oil is counting on. As prices soften, demand will rebound. And the majors want to be front and center when that happens. That explains why they're not panicking over Q1 earnings declines. They're playing the long game. U.S. shale producers, however, are not nearly as relaxed. At sub-$60 Brent and WTI hovering near $56, the economics for independents are breaking down. Bloomberg reports that EOG Resources has cut $200 million from its 2025 capex and dialed back production growth from 3% to 2%. JPMorgan analysts called EOG 'the canary in the coalmine'—a warning that more revisions may follow. And they likely will. While shale drillers have made impressive gains in efficiency over the last decade, they're still more exposed to price shocks than the vertically integrated supermajors. Shale needs sustained prices closer to $65–$70 to grow comfortably. Below $60, investment dries up fast. That opens the door for Big Oil. With a mix of conventional, deepwater, and shale projects—and balance sheets padded by years of capital discipline—they can afford to wait out the noise. In fact, they're betting the current softness in prices will be short-lived, and that when the rebound comes, they'll be in position to dominate. Meanwhile, OPEC+ is also feeling the pressure. The decision to accelerate the rollback of production cuts—cramming three months of increases into one, starting in June—suggests a cartel trying to get ahead of a deteriorating market. Whether this move is a show of strength or a prelude to discord remains to be seen. But it adds even more barrels into a market where Big Oil is already ramping up. If there is a war brewing, it's not just OPEC vs. shale anymore—it's OPEC vs. Big Oil, with shale sidelined and Asian buyers cheering from the stands. In short, the next few months could set the tone for the next chapter of global oil. Will the majors pull back if Q2 earnings disappoint? Possibly—but not likely. So far, they've shown every intention of outlasting the storm. And if that storm happens to knock out weaker rivals in the process, all the better. By Irina Slav for More Top Reads From this article on Sign in to access your portfolio
