Latest news with #Opec
The Star
3 days ago
- Business
- The Star
Oil up as demand expectations, economic data lift sentiment
People walking past an Opec logo during a climate change conference —Reuters SINGAPORE: Oil prices rose on Thursday, reversing declines in the previous three sessions, buoyed by stronger-than-expected economic data from the world's top oil consumers and signs of easing trade tensions. Brent crude futures rose 24 cents, or 0.35%, to $68.76 a barrel at 0457 GMT. U.S. West Texas Intermediate crude futures were up 33 cents, or 0.5%, at $66.71. Both benchmarks fell more than 0.2% in the previous session. U.S. President Donald Trump has said letters notifying smaller countries of their U.S. tariff rates would go out soon, and said on Wednesday that he would probably put a blanket 10% or 15% tariff on smaller countries. New agreements with Indonesia and Vietnam were announced this week. Trump also offered renewed optimism about prospects of a deal with Beijing on illicit drugs and hinted that a trade deal with India was very close, while an agreement could possibly be reached with Europe as well. "Trump softened tones on China and proposed lower tariff rates on smaller countries, which are seen as positive developments in the global trade outlooks," said independent analyst Tina Teng. "China's better-than-expected economic data and the U.S.'s larger-than-expected oil inventory draw have both been bullish factors for oil prices." U.S. crude inventories fell by 3.9 million barrels to 422.2 million barrels last week, the Energy Information Administration said on Wednesday, a steeper decline than forecast for a 552,000-barrel draw, suggesting stronger refinery activity, tighter supply, and increased demand. However, larger-than-expected builds in gasoline and diesel inventories capped price gains. This raised concerns of weakening demand from summer travel, ANZ analysts said in a note on Thursday. The latest snapshot of the U.S. economy by the central bank, released on Wednesday, showed activity picked up in recent weeks. However, the outlook was "neutral to slightly pessimistic" as businesses reported that higher import tariffs were putting upward pressure on prices. Meanwhile, China data showed growth slowed in the second quarter, but not by as much as previously feared, in part because of front-loading to beat U.S. tariffs, easing fears over the state of the world's largest crude importer's economy. Data also showed that China's June crude oil throughput was up 8.5% from a year ago, implying stronger fuel demand. "Support has come from the positive news pertaining to some easing of trade tensions between China and the U.S. with President Trump lifting the ban on the sale of AI chips to China along with the announcement of a trade deal with Indonesia," said John Paisie, president of Stratas Advisors. - Reuters
Observer
4 days ago
- Business
- Observer
Oil prices rise, global economy stabilises in June
VIENNA: The Organization of the Petroleum Exporting Countries (Opec) announced on Wednesday a significant increase in oil prices in June, with the average Opec basket rising by $6.11 to $69.73 a barrel, in addition to the stability of the global economy in the same month. Opec reported in its monthly report that Brent crude rose by $5.79 to $69.80 and West Texas Intermediate crude rose by $6.39 to $67.33. On the economic front, the report indicated that the global economy continued its stable growth, supported by strong performance in the first half of this year, with growth forecasts remaining stable at 2.9 per cent for 2025 and 3.1 per cent for 2026. The report indicated that forecasts for the world's largest economies remained stable during 2025 and 2026, led by the United States at 1.7 per cent and 2.1 per cent, China at 4.6 per cent and 4.5 per cent, and India at 6.5 per cent. In addition, forecasts for Japan, the Euro zone, Brazil and Russia remained stable. Global oil demand remained unchanged, with an expected growth of 1.3 million barrels per day for 2025 and 2026, an increase of 100,000 barrels per day from OECD countries and 1.2 million barrels per day from non-OECD countries. Regarding supplies, Opec expects oil production from countries not participating in the Declaration of Cooperation to grow by 800,000 barrels per day in 2025 and 700,000 barrels per day in 2026, led by the United States, Brazil, Canada and Argentina. The report indicated that crude oil production from Opec countries participating in the agreement recorded a monthly increase of 349,000 barrels per day in June, reaching approximately 41.56 million barrels per day. The Opec report also addressed Europe's imports of crude oil and products, indicating an 11 per cent increase. Japan's imports of crude oil declined, although they remained higher than the previous year's levels, and its product exports declined. The report indicated that commercial oil inventories in OECD countries rose by 34.5 million barrels in May to 2,771 million barrels, but they remain approximately 184 million barrels below the 2015-2019 average, with both crude oil and product inventories rising. — ONA
Time of India
4 days ago
- Business
- Time of India
Energy security: Global crude oil prices have remained relatively stable, says Hardeep Singh Puri; India eyes geothermal push
Union minister Hardeep Singh Puri (Pic credit- ANI) Petroleum and Natural Gas minister Hardeep Singh Puri on Monday said that global crude oil prices have remained relatively stable despite persistent geopolitical tensions, suggesting that the world has sufficient energy resources to meet demand. 'There are many things that have an impact on crude prices. People say that if there is military conflict somewhere, it will have an impact, but there are many military conflicts, and prices are still between $65 and $70 per barrel,' Puri said on the sidelines of a national seminar on school education organised by the Council for Social Development, quoted ANI. 'My view is that there is enough energy available in the world. ' Puri's remarks come amid continued global uncertainty, with concerns over supply chains and energy inflation resurfacing in light of recent conflicts and climate events. The minister underlined India's growing engagement in global energy forums, pointing to the country's recent participation in the Opec seminar for the first time. 'It's basically a meeting of the Opec countries. Considering that we are now one of the largest consumers of crude oil in the world, it makes sense for us to be there,' he said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Esse novo alarme com câmera é quase gratuito em Adamantina (consulte o preço) Alarmes Undo Reflecting on his recent visit to Austria, Iceland, and Norway, Puri said India is actively looking to expand its clean energy footprint. During his stop in Iceland, he discussed geothermal cooperation with local companies. 'Iceland is very strong on geothermal, and we have ongoing collaborations with them. The advantage of going and talking to the private sector there is identifying future work that can be done,' Puri said. He also expressed a personal interest in integrating geothermal into India's broader energy mix and hinted at its potential inclusion in the India Energy Week platform. 'India Energy Week was launched three years ago and is now the second-largest global platform after ADIPEC in Abu Dhabi,' Puri said, the agency quoted. 'ADIPEC focuses on oil and gas, while we cover all forms of energy, including biofuels and green hydrogen. We intend to include geothermal energy as well.' Puri also cited recent milestones in domestic energy exploration. 'ONGC has drilled over 500 wells, the highest in the past 37 years,' he said, noting the financial risk involved in energy discovery. He referred to the example of Guyana, where 47 wells were drilled at $100 million each before a successful strike. 'We are digging more wells. I am only reporting to you the 18 wells on which, under our law, if somebody who is doing exploration and production finds some oil, they have to report to the Directorate General of Hydrocarbons,' he said, reaffirming the regulatory safeguards in place to govern exploration activity in India. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
5 days ago
- Business
- Business Standard
Trump's Russia threat puts spotlight on India, China crude oil imports
Russian flows to India reached 2.1 million barrels a day in June, the biggest monthly intake in nearly a year, and close to the record set in May 2023, data from Kpler show Bloomberg By Yongchang Chin President Donald Trump's threat to impose financial penalties on Russia has put the spotlight on the two biggest buyers of Moscow's crude — India and China — but markets remain skeptical of disruption, for now. India became a major importer of Russian oil since the invasion of Ukraine in early 2022. More than a third of overall purchases have been from the Opec+ producer this year, compared with less than 1 per cent prior to the war, according to data from Kpler. China's imports have also climbed over the same period. Still, the initial reaction from the market to Trump's remarks was nonchalance. Global benchmark Brent fell almost 2 per cent to close below $70 a barrel on Monday, suggesting little concern around the potential impact to crude flows. Trump said penalties would come in the form of 'secondary tariffs,' without providing details, and would be implemented in 50 days if Russia doesn't end hostilities with Ukraine. Matt Whitaker, the US ambassador to Nato, said the action effectively represents sanctions on nations buying Russian oil. Whitaker specifically cited India and China. Russian flows to India reached 2.1 million barrels a day in June, the biggest monthly intake in nearly a year, and close to the record set in May 2023, data from Kpler show. China's purchases haven't accelerated at the same pace, but have been consistently above 1 million barrels a day since the war. 'If push really comes to shove, and India cannot buy any crude oil from the Russian system, then India has optionality with the other Opec members,' said Mukesh Sahdev, head of commodity markets at Rystad Energy A/S. But 'it will be at a higher cost,' he added. Barrels from the Middle East and Africa could help plug the gap of lost Russian supply, but the crude would be more expensive. Imports from Saudi Arabia in May were $5 a barrel higher than those from Russia, while shipments from Iraq were about 50 cents more pricey, according to official data from India's Ministry of Commerce and Industry.
The National
6 days ago
- Business
- The National
Writing oil's death certificate is premature, but what will its kingdom become?
Opec held its biennial seminar last week at Vienna's Hofburg Palace. It is an icon of the late Austro-Hungarian empire, a scientific and cultural ferment that was often unfairly caricatured as a dinosaur, living in the past and doomed to collapse. Giants such as Freud, Einstein, Klimt and Mahler rubbed shoulders. In a grim portent, the pre-fame Hitler, Stalin, Trotsky and Tito were all present in the city simultaneously in 1913. The oil exporters' latest long-term energy outlook was released on Thursday. Is it, too, the last gasp of a dying imperium? Or an optimistic step towards a new future? Speaking to The National at the Hofburg, Opec secretary general Haitham Al Ghais said the organisation's critics were 'writing Opec's death certificate – again". Indeed, its demise has been repeatedly, and wrongly, predicted. Opec's World Oil Outlook 2050 is a useful counterpoint to the International Energy Agency's World Energy Outlook, which came out in October. The industrialised countries' organisation has for some time been much more aggressive in its forecasts for climate action and energy transition, and more sceptical on oil demand, than the oil exporters' group. Like Kaiser Franz glowering from the Hofburg at his rival Napoleon, Opec has grown increasingly irritated at what it sees as the politicisation of its Paris-based counterpart. The IEA's publication came out, of course, before the second election of Donald Trump as US President, and the zeitgeist has changed since then. Low-carbon energy is under attack, and promoting oil, gas and coal is at the top of the White House's agenda. European politicians worry about high energy bills, industrial uncompetitiveness and the rise of the far right, opposed to 'net zero' carbon policies. Tariff turmoil and hostility to international co-operation threaten collective action on climate change. A previously unthinkable war involving Israel, the US and Iran has passed off without serious energy consequences, so far. Opec's schadenfreude at its critics' discomfiture is understandable. Its latest outlook revises up long-term oil demand by 2.8 million barrels per day by 2050, to 122.9 million bpd. It sees a gradual slowing of demand growth after 2030, but no peak, in sharp contrast to both the IEA, and its own long-term projections from 2020, 2021 and 2022. Those earlier views were perhaps clouded by the pandemic and then the impact of Russia's invasion of Ukraine. Perhaps counter-intuitively, Opec has cut its forecasts for the next few years, chipping off up to 1.7 million bpd, mostly on worries over the Chinese economy. It projects 111.6 million bpd of demand in 2029, up from 2024's 103.7 million bpd. Still, an average annual gain of nearly 1.6 million bpd over five years would be very robust by historic standards. Since 1980, it has happened only twice: in 2012-2017 and 2002-2007. But the IEA's medium-term outlook foresees a peak in oil demand by 2029, at 105.6 million bpd, with annual growth averaging just 0.5 million bpd over this five-year period. That is consistent with the last five years, but otherwise also a historical rarity, occurring around the global financial crisis, and in the early 1980s recession and oil shock hangover. Opec quite reasonably observes that, 'many initial net-zero policies promoted unrealistic timelines or had little regard for energy security, affordability or feasibility'. In its view, out to 2050, oil retains its market share; renewables grow, but essentially replace coal. Whether oil demand expands robustly to 2050 or peaks soon is a contest waged across geographies and sectors. In Opec's view, oil wins in developing Asia, Africa, Latin America and the Middle East, gaining 25.3 million bpd by mid-century; China is basically a draw, with 1.7 million bpd of expansion to 2030 but stasis thereafter. This basically assumes that emerging economies follow a similar development path to their East Asian counterparts of the 1960s to the 2000s, and that rapid population and economic growth outstrip adoption of non-oil energy sources. But petroleum does not do too badly in the developed countries either in Opec's view – consumption drops only 8.5 million bpd, less than 20 per cent, despite maturing and ageing economies, tightening climate policies, and rising electric vehicle use. In sectors, too, oil wins almost across the board, losing only a little ground in power generation, while it continues rising in road, sea and air travel, petrochemicals, industry and home and commercial use. This is, frankly, a little hard to believe. Yes, there are few good alternatives today to oil in ships, planes and petrochemicals: it's a fair argument that, in the absence of strong climate policy, demand here will keep climbing. But to satisfy these forecasts, petroleum would have to keep growing in nearly all of its traditional uses, without much prospect of discovering any new ones. Meanwhile, renewable and nuclear electricity have not just oil's existing domains, but new kingdoms to conquer, such as data centres and air taxis. Given that Saudi Arabia itself plans to phase out its 1 million bpd of daily oil burn in power plants by 2030, it seems implausible that global use in power generation would fall only 0.5 million bpd by 2050. In industry and homes, natural gas and electrification are cleaner, more flexible and increasingly cheaper options. Road transport is the key question. Opec thinks that electric vehicles will constitute only 28 per cent of the global fleet even by 2050. Almost none of today's cars will still be on the road by then. Battery and plug-in hybrids make up about 19 per cent of world sales currently, 26 per cent of European sales, and almost 53 per cent of those in China. New petrol and diesel car sales will be phased out in the UK and EU between 2030 and 2035, and China too will probably effectively ban them by then. The death certificate for oil written by the IEA seems indeed premature. But the oil exporters' organisation may find itself ruling over a patchwork of fading territories, where oil is a tired legacy or a last resort. Or, it may extend its reach over areas of growth, in India, in Africa, on the seas and in the skies. A lot has to go in Opec's favour if the zenith of its empire of oil is to outlast mid-century.
