Latest news with #OrganisationofthePetroleumExporting
Yahoo
29-05-2025
- Business
- Yahoo
Saudi Arabia set to lower July oil prices for Asia
Saudi Arabia is set to reduce its July crude oil prices for Asia to a six-month low, mirroring declines in benchmark prices due to an uptick in supply from OPEC+. The anticipated drop for Arab Light crude could range from $0.40–0.50, setting the price at $0.90–$1 per barrel (bbl) lower than the previous month, according to a Reuters survey of four Asian refining sources. This potential reduction would mark the lowest price point for Arab Light crude since January, as indicated by Reuters data. Saudi crude official selling prices (OSPs) are typically announced around the fifth of each month and influence pricing for Iranian, Kuwaiti and Iraqi oil, affecting around nine million barrels per day (bpd) destined for Asia. The survey also suggests that July OSPs for other Saudi grades such as Arab Extra Light, Arab Medium and Arab Heavy crude are expected to fall by $0.30-0.45/bbl from June. The decline in oil prices follows OPEC+, which includes the Organisation of the Petroleum Exporting Countries and allies such as Russia, agreeing to boost production by nearly one million barrels per day (1mbbl/d) across April, May and June. In an upcoming meeting, eight OPEC+ countries may consider a further output increase of 411,000bpd for July, as per sources. These supply hikes come amid global economic challenges including a tariff war initiated by the US. Middle Eastern benchmarks have been pressured by the rising supplies, with the average cash Dubai premium to swaps at $1.21/bbl as of 27 May, a $0.45 decrease from April's average. Saudi Aramco, the state oil company, bases its crude prices on customer recommendations and the past month's oil value changes, considering yields and product prices. "Saudi Arabia set to lower July oil prices for Asia" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Arabian Post
23-05-2025
- Business
- Arabian Post
OPEC+ Output Plans Weigh on Oil Prices Amid Supply Concerns
Oil prices are on track for their first weekly decline in over a month, as Brent crude dipped below $64 per barrel and West Texas Intermediate slid under $61. The downturn, marking a fourth consecutive session of losses, is attributed to expectations of increased output from the Organisation of the Petroleum Exporting Countries and its allies , coupled with signs of a global supply surplus. Delegates within OPEC+ have discussed a potential production increase of 411,000 barrels per day for July, although no formal agreement has been reached. This prospective hike follows earlier decisions to raise output by nearly 1 million barrels per day through April to June. Analysts suggest that the alliance's strategy aims to balance market share and revenue needs, but it risks exacerbating an already oversupplied market. The anticipated production boost comes amid growing concerns over weakening demand. Economic indicators point to a slowdown in major economies, with trade tensions and inflationary pressures dampening consumption. Additionally, U.S. crude inventories have seen unexpected builds, further indicating a potential glut. ADVERTISEMENT Financial institutions have adjusted their forecasts in response to these developments. Barclays has lowered its Brent crude price projection for 2025 by $4 to $66 per barrel, citing the accelerated output plans and softening demand. Similarly, Goldman Sachs has reduced its year-end forecast for Brent by $5, now expecting it to average $71 per barrel, reflecting subdued demand growth and increased OPEC+ supply.
Yahoo
15-05-2025
- Business
- Yahoo
Why fuel price crash won't make flying cheaper
Australians are unlikely to reap the benefits of cheap fuel on their next flight, as airlines look to recoup costs in other areas. Oil prices plunged towards a four-year low on Monday morning after the Organisation of the Petroleum Exporting Countries (OPEC) said it was going to raise output by 411,000 barrels per day in June to punish overproducing countries. US President Donald Trump's tariff policies and their threat to global growth have only added to these pressures. The price of Brent crude oil fell to a low of $US58 ($A90) before bouncing back to $US60 ($A93) a barrel over the trading day. Jet fuel prices across Asia and Oceania are also on the decline, with the International Air Transport Association reporting that it has fallen 14.6 per cent in the past year. Despite the dramatic falls in oil prices and confirmation the price of fuel is the largest cost to an airline, it seems flight prices are unlikely to drop on the back of Monday's price fluctuations. NewsWire understands at least one major airline uses hedging strategies of locking in the fuel price to stop major fluctuations in prices in the medium term. The weak Australian dollar and other inflationary pressures – such as wages and parts -– are also understood to be factors in pricing decisions. Consumer Champion's consumer advocate Adam Glezer said one of the major costs to airlines was fuel, arguing the falls in commodity prices should be passed on to consumers. 'It should be flowing through straight away,' he told NewsWire. 'It is the equivalent of the Reserve Bank of Australia cutting interest rates and the major banks not passing it on. 'Obviously, that's frowned upon, so why is there not a big deal made when the airlines don't pass it on?' Mr Glezer claimed it was a money grab in a bid to increase an airline's profit margin without taking consumers into account. 'It is completely unfair to consumers. Airlines increase (prices of) flights by the cost of fuel but do not decrease it when it goes down.' he said. 'This is one of the many problems with a duopoly. 'Airlines in countries with increased competition wouldn't get away with this without losing significant market share.' A Qantas spokesperson told NewsWire airlines faced more costs than just that of fuel. 'Average domestic fares have been rising less than the rate of inflation, while international fares have been coming down,' the spokesperson said. Sign in to access your portfolio
New Straits Times
13-05-2025
- Business
- New Straits Times
Oil prices ease off 2-week highs after US, China pause tariff war
KUALA LUMPUR: Oil prices eased on Tuesday from a two-week high reached during the previous session after the US and China agreed to temporarily slash tariffs, sparking optimism that a trade war between the world's two biggest economies would come to an end. The US and China agreed to slash steep tariffs for at least 90 days, sending Wall Street stocks, the US dollar and crude prices sharply higher on Monday. But underlying schisms that led to the dispute remain, including the US trade deficit with China and US President Donald Trump's demand for more action from Beijing to combat the US fentanyl crisis. Brent crude futures dropped 14 cents, or 0.2 per cent, to US$64.82 per barrel by 0011 GMT. US West Texas Intermediate (WTI) crude fell 13 cents, or 0.2 per cent, to US$61.82. Both benchmarks closed about 1.5 per cent higher on Monday at their steepest settlements since April 28. The gains come during a turbulent time for global oil markets. Last month, oil prices fell to a four-year low on investor worries that the US-China trade war could depress economic growth and oil demand. Furthermore, the Organisation of the Petroleum Exporting Countries (OPEC) decided to boost oil output by more than previously expected. (Reporting by Stephanie Kelly; Editing by Jacqueline Wong)
Perth Now
06-05-2025
- Business
- Perth Now
Why fuel price crash won't make flying cheaper
Australians are unlikely to reap the benefits of cheap fuel on their next flight, as airlines look to recoup costs in other areas. Oil prices plunged towards a four-year low on Monday morning after the Organisation of the Petroleum Exporting Countries (OPEC) said it was going to raise output by 411,000 barrels per day in June to punish overproducing countries. US President Donald Trump's tariff policies and their threat to global growth have only added to these pressures. The price of Brent crude oil fell to a low of $US58 ($A90) before bouncing back to $US60 ($A93) a barrel over the trading day. The price of fuel has fallen since the start of the Trump administration. NewsWire / Luis Enrique Ascui Credit: News Corp Australia Jet fuel prices across Asia and Oceania are also on the decline, with the International Air Transport Association reporting that it has fallen 14.6 per cent in the past year. Despite the dramatic falls in oil prices and confirmation the price of fuel is the largest cost to an airline, it seems flight prices are unlikely to drop on the back of Monday's price fluctuations. NewsWire understands at least one major airline uses hedging strategies of locking in the fuel price to stop major fluctuations in prices in the medium term. The weak Australian dollar and other inflationary pressures – such as wages and parts -– are also understood to be factors in pricing decisions. Consumer advocate Adam Glezer said one of the major costs to airlines was fuel, arguing the falls in commodity prices should be passed on to consumers. 'It should be flowing through straight away,' he told NewsWire. 'It is the equivalent of the Reserve Bank of Australia cutting interest rates and the major banks not passing it on. 'Obviously, that's frowned upon, so why is there not a big deal made when the airlines don't pass it on?' Australians travellers are unlikely to benefit from cheaper fuel. NewsWire / Jeremy Piper Credit: News Corp Australia Mr Glezer claimed it was a money grab in a bid to increase an airline's profit margin without taking consumers into account. 'It is completely unfair to consumers. Airlines increase (prices of) flights by the cost of fuel but do not decrease it when it goes down.' he said. 'This is one of the many problems with a duopoly. 'Airlines in countries with increased competition wouldn't get away with this without losing significant market share.' A Qantas spokesperson told NewsWire airlines faced more costs than just that of fuel. 'Average domestic fares have been rising less than the rate of inflation, while international fares have been coming down,' the spokesperson said.
