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CNA
2 days ago
- Business
- CNA
Oil edges up as geopolitical concerns and weaker dollar support
LONDON :Oil edged up on Tuesday, in the face of rising geopolitical tensions as the war in Ukraine ramped up despite peace talks in Turkey and Iran was set to reject a U.S. nuclear deal proposal that would be key to easing sanctions on the major oil producer. Crude had gained nearly 3 per cent on Monday after the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, kept its July output hike at 411,000 barrels per day, the same as earlier months and less than some in the market had feared. Brent crude futures gained 45 cents, or 0.7 per cent, to $65.08 a barrel by 1154 GMT. U.S. West Texas Intermediate crude was up 31 cents, or 0.5 per cent, to $62.83. "Risk premia have filtered back into the oil price following deep Ukraine strikes on Russia over the weekend," said analyst Harry Tchilinguirian of Onyx Capital Group. "But more importantly for the barrel count, there is the to and fro between the U.S. and Iran regarding uranium enrichment." Ukraine and Russia at the weekend ramped up the war with one of the biggest drone battles of their conflict, a Russian highway bridge blown up over a passenger train and an attack on nuclear-capable bombers deep in Siberia. Iran, meanwhile, was poised to reject a U.S. proposal to end a decades-old nuclear dispute, an Iranian diplomat said on Monday, saying it fails to address Tehran's interests or soften Washington's stance on uranium enrichment. If the nuclear talks fail, it could mean continued sanctions on Iran, which would limit Iranian supply and be supportive of oil prices. Further support came from the weak dollar. The dollar index held near six-week lows as investors weighed the outlook for U.S. President Donald Trump's tariff policy and its potential to hurt growth and stoke inflation. A weaker U.S. currency makes dollar-priced commodities such as oil less expensive for holders of other currencies. "Crude oil prices continue to rise, supported by the weakening dollar," said Priyanka Sachdeva, senior market analyst at Phillip Nova. Adding to supply worries, wildfires burning in Canada's province of Alberta have affected more than 344,000 barrels per day of oil sands production, or about 7 per cent of the country's overall crude output, according to Reuters calculations. Further price support could come if forecasts of a drop in U.S. crude inventories are realised in the latest round of weekly supply reports.
Business Recorder
2 days ago
- Business
- Business Recorder
Oil inches up on geopolitical concerns and weaker dollar
LONDON: Oil prices ticked up on Tuesday supported by rising geopolitical tensions as Russia and Ukraine ramped up the war and Iran was set to reject a U.S. nuclear deal proposal that would be key to easing sanctions on the major oil producer. Crude had gained nearly 3% on Monday after the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, kept its July output hike at 411,000 barrels per day, the same as earlier months and less than some in the market had feared. Brent crude futures gained 43 cents, or 0.7%, to $65.06 a barrel by 0807 GMT. U.S. West Texas Intermediate crude was up 50 cents, or 0.8%, to $63.02. 'Risk premia have filtered back into the oil price following deep Ukraine strikes on Russia over the weekend,' said analyst Harry Tchilinguirian of Onyx Capital Group. 'But more importantly for the barrel count, there is the to and fro between the U.S. and Iran regarding uranium enrichment.' Oil leaps 4% after OPEC+ keeps output increase unchanged Ukraine and Russia at the weekend ramped up the war with one of the biggest drone battles of their conflict, a Russian highway bridge blown up over a passenger train and an attack on nuclear-capable bombers deep in Siberia. Iran, meanwhile, was poised to reject a U.S. proposal to end a decades-old nuclear dispute, an Iranian diplomat said on Monday, saying it fails to address Tehran's interests or soften Washington's stance on uranium enrichment. If the nuclear talks Iran fail, it could mean continued sanctions on Iran, which would limit Iranian supply and be supportive of oil prices. Further support came from the weak dollar. The dollar index held near six-week lows as investors weighed the outlook for President Donald Trump's tariff policy and its potential to hurt growth and stoke inflation. A weaker U.S. currency makes dollar-priced commodities such as oil less expensive for holders of other currencies. 'Crude oil prices continue to rise, supported by the weakening dollar,' said Priyanka Sachdeva, senior market analyst at Phillip Nova. Adding to supply worries, wildfires burning in Canada's province of Alberta have affected more than 344,000 barrels per day of oil sands production, or about 7% of the country's overall crude output, according to Reuters calculations. Further price support could come if forecasts of a drop in U.S. crude inventories are realised in the latest round of weekly supply reports.
CNA
2 days ago
- Business
- CNA
Oil inches up on geopolitical concerns and weaker dollar
LONDON :Oil prices ticked up on Tuesday supported by rising geopolitical tensions as Russia and Ukraine ramped up the war and Iran was set to reject a U.S. nuclear deal proposal that would be key to easing sanctions on the major oil producer. Crude had gained nearly 3 per cent on Monday after the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, kept its July output hike at 411,000 barrels per day, the same as earlier months and less than some in the market had feared. Brent crude futures gained 43 cents, or 0.7 per cent, to $65.06 a barrel by 0807 GMT. U.S. West Texas Intermediate crude was up 50 cents, or 0.8 per cent, to $63.02. "Risk premia have filtered back into the oil price following deep Ukraine strikes on Russia over the weekend," said analyst Harry Tchilinguirian of Onyx Capital Group. "But more importantly for the barrel count, there is the to and fro between the U.S. and Iran regarding uranium enrichment." Ukraine and Russia at the weekend ramped up the war with one of the biggest drone battles of their conflict, a Russian highway bridge blown up over a passenger train and an attack on nuclear-capable bombers deep in Siberia. Iran, meanwhile, was poised to reject a U.S. proposal to end a decades-old nuclear dispute, an Iranian diplomat said on Monday, saying it fails to address Tehran's interests or soften Washington's stance on uranium enrichment. If the nuclear talks Iran fail, it could mean continued sanctions on Iran, which would limit Iranian supply and be supportive of oil prices. Further support came from the weak dollar. The dollar index held near six-week lows as investors weighed the outlook for President Donald Trump's tariff policy and its potential to hurt growth and stoke inflation. A weaker U.S. currency makes dollar-priced commodities such as oil less expensive for holders of other currencies. "Crude oil prices continue to rise, supported by the weakening dollar," said Priyanka Sachdeva, senior market analyst at Phillip Nova. Adding to supply worries, wildfires burning in Canada's province of Alberta have affected more than 344,000 barrels per day of oil sands production, or about 7 per cent of the country's overall crude output, according to Reuters calculations. Further price support could come if forecasts of a drop in U.S. crude inventories are realised in the latest round of weekly supply reports.
International Business Times
3 days ago
- Business
- International Business Times
Oil Prices Surge 4% After OPEC+ Maintains July Output Hike
Oil prices surged Monday in the wake of the OPEC+ decision to stick to its scheduled increase in production next month. Brent crude was up $2.28, or 3.6%, at $65.06 a barrel by 1335 GMT. U.S. West Texas Intermediate (WTI) crude also rose by $2.99, or 4.9%, to $63.78 a barrel. The price surge follows declines of more than 1% for both benchmarks last week. OPEC+, the coalition of oil producers comprised of Saudi Arabia and Russia, said on Saturday that it would increase production by 411,000 barrels a day (bpd) in July. This is the third straight month of such gains. The group is hoping to win back market share and punish members that have pumped more than their quotas. Although there was speculation last week that a bigger output increase might be in play, the group stuck with the expected increase. The 411,000 bpd figure was already priced by traders, and analysts say a surprise bigger increase could have sent prices scurrying south. "If they had delivered a larger surprise, surprise, then the price open on Monday would have been pretty ugly," said Harry Tchilinguirian of Onyx Capital Group. The move arrives on the heels of indications of internal problems. Kazakhstan, for one country, has declined to reduce output, despite its earlier promise. Kazakhstan was not going to adhere to production cuts, Russia's Interfax news agency reported yesterday that the country's deputy energy minister had said. Analysts say oil prices would have to drop below $58 a barrel to make Kazakhstan's overproduction a losing proposition. OPEC+ will confirm another 410,000 bpd increase for August, according to Goldman Sachs, which said fundamental support is returning. "Tight spot oil fundamentals, beats in hard global activity data, and seasonal summer support to oil demand mean that the expected demand slowdown is unlikely to be sharp enough to change our view that we will keep raising production," the bank said. Morgan Stanley shares this view, predicting that the coalition will roll out more incremental increases each month all the way to October, when 2.2 million b/d is replaced. Political risks are similarly factored into oil prices. Ukrainian drone attacks on Russian targets over the weekend have increased tensions, which energy analysts say is adding to the price support. "We are back to geopolitical risks," said Jorge Leon of Rystad Energy. By and large, the mood is cautious. World oil demand is forecast to rise by some 775,000 bpd in 2025, according to the International Energy Agency's most recent forecast for a lesser gain of 740,000 bpd. For their part, the contrary numbers are increasing only slightly and may be too modest to offset greater supply.
Time of India
3 days ago
- Business
- Time of India
Oil leaps 4% after OPEC+ keeps output increase unchanged
Oil prices jumped by about 4% on Monday after producer group OPEC+ kept output increases in July at the same level as the previous two months. Brent crude futures climbed by $2.49, or 3.97%, to $65.27 a barrel by 1220 GMT. U.S. West Texas Intermediate crude was up $2.70, or 4.44%, at $63.49. Both contracts lost more than 1% last week. The Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, decided on Saturday to raise output by 411,000 barrels per day (bpd) in July, the third consecutive monthly increase of that amount, as it looks to wrestle back market share and punish members that have produced more than their quotas. Sources familiar with OPEC+ talks said on Friday that the group could discuss an even larger increase. Live Events Oil traders said the 411,000 bpd increase had already been priced in to Brent and WTI futures. "Had they gone through with a surprise larger amount, then Monday's price open would have been pretty ugly indeed," Onyx Capital Group analyst Harry Tchilinguirian wrote on LinkedIn. Kazakhstan has informed OPEC that it does not intend to reduce oil production, Russia's Interfax news agency reported on Thursday, citing Kazakhstan's deputy energy minister. Oil prices would need to fall to $58 a barrel or lower to make it unprofitable for Kazakhstan to overproduce its quota, said Bjarne Schieldrop, SEB's chief commodities analyst. Goldman Sachs analysts expect OPEC+ to implement a final 410,000 bpd production increase in August. "Relatively tight spot oil fundamentals, beats in hard global activity data and seasonal summer support to oil demand suggest that the expected demand slowdown is unlikely to be sharp enough to stop raising production when deciding on August production levels on July 6," the bank said in a note. Morgan Stanley analysts also said they expect 411,000 bpd to be added back each month up to a total of 2.2 million bpd by October. "With this latest announcement, there is little sign that the pace of quota increases is slowing," the bank's analysts said. Prices were also supported by the increased geopolitical risk premium after Ukrainian drone strikes against Russia over the weekend, said Rystad Energy's Jorge Leon.
