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The Star
a day ago
- Business
- The Star
Blackout hits central, southern Iraq, sources say
BAGHDAD (Reuters) -Iraq was hit by a power outage in its central and southern regions on Monday after a shutdown at a power plant in the western province of Anbar, electricity ministry sources said. The sudden shutdown of the Hamidiya plant led to a fault in the electricity transmission network, the sources said. The chair of Iraq's parliament energy committee told Reuters the outage did not affect the semi-autonomous Kurdistan region. A member of the Organization of the Petroleum Exporting Countries, and one of the world's leading oil producers, Iraq has struggled to provide its citizens with energy since the 2003 U.S.-led invasion that toppled Saddam Hussein. In March, U.S. President Donald Trump's administration rescinded a waiver that had allowed Iraq to pay Iran for electricity, as part of Trump's "maximum pressure" campaign against Tehran. Iraq is heavily dependent on Iranian natural gas imports to generate power. (Reporting by Muayad Kenany and Tala Ramadan; Writing by Hatem Maher; Editing by Alex Richardson)
The Star
05-08-2025
- Business
- The Star
Oil prices fall on Opec+ output hikes
Brent crude futures settled US$1.12, or 1.63%, lower to US$67.64 a barrel, while US West Texas Intermediate crude slipped US$1.13, or 1.7%, to US$65.16. NEW YORK: Oil prices slipped on Tuesday as rising Opec+ supply and worries of weaker global demand countered concern about US President Donald Trump's threats to India over its Russian oil purchases. Brent crude futures settled US$1.12, or 1.63%, lower to US$67.64 a barrel, while US West Texas Intermediate crude slipped US$1.13, or 1.7%, to US$65.16. Both benchmarks settled to their lowest in five weeks. The Organization of the Petroleum Exporting Countries and its allies, together known as Opec+, agreed on Sunday to raise oil production by 547,000 barrels per day for September, a move that will end its most recent output cut earlier than planned. "The significant increase in Opec supplies is weighing on the market," said Andrew Lipow, president of Lipow Oil Associates. Also weighing on prices, US services sector activity unexpectedly flatlined in July with little change in orders and a further weakening in employment even as input costs climbed by the most in nearly three years, underscoring the ongoing drag of uncertainty over the Trump administration's tariff policy on businesses. "The market now is going to see if India and China agree to substantially reduce the purchases of Russian crude oil, thereby looking for alternative supplies elsewhere," Lipow said. Trump on Tuesday again threatened higher tariffs on Indian goods over the country's Russian oil purchases over the next 24 hours. Trump also said declining energy prices could pressure Russian President Vladimir Putin to halt the war in Ukraine. New Delhi called Trump's threat "unjustified" and vowed to protect its economic interests, deepening a trade rift between the two countries. Oil's move since Trump's threat indicates that traders are sceptical of a supply disruption happening, John Evans of oil broker PVM said in a report. He questioned whether Trump would risk higher oil prices. "I'd call it a stable market for oil," said Giovanni Staunovo, an analyst at UBS. "Assume this likely continues until we figure out what the US president announces in respect to Russia later this week and how those buyers would react." India is the biggest buyer of seaborne crude from Russia, importing about 1.75 million bpd from January to June this year, up 1% from a year ago, according to data provided to Reuters by trade sources. US crude inventories fell by 4.2 million barrels last week, sources citing American Petroleum Institute figures said on Tuesday. The US Energy Information Administration is due to release weekly U.S. inventory data on Wednesday, respectively. — Reuters
Business Times
04-08-2025
- Business
- Business Times
Oil falls as Opec+ output hike adds to oversupply concerns
[NEW YORK] Oil prices fell to their lowest levels in a week on Monday after Opec+ agreed to another large output increase in September, adding to oversupply concerns after US data showed lacklustre fuel demand in the top consuming nation. Brent crude futures fell 91 cents, or 1.3 per cent, to settle at US$68.76 a barrel, while US West Texas Intermediate crude declined by US$1.04, or 1.5 per cent, to close at US$66.29 a barrel. Both contracts settled at their lowest in a week, after declining close to 3 per cent on Friday. The Organization of the Petroleum Exporting Countries and its allies, together known as Opec+, agreed on Sunday to raise oil production by 547,000 barrels per day (bpd) for September. The latest in a series of accelerated output increases aimed at capturing market share was in line with market expectations and marks a full and early reversal of the group's largest tranche of output cuts, amounting to about 2.5 million bpd, or about 2.4 per cent of global demand. While the group cited healthy market fundamentals to back its decision, data released by the US government last week showed the weakest petrol demand in May, the start of the country's summer driving season, since the Covid-19 pandemic of 2020. The data also showed US oil production at a monthly record high in May, adding to global oversupply concerns. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Oil traders are now hedging for the possibility of further supply increases from Opec+, with potential discussions to unwind a further 1.65 million bpd of cuts at the group's next meeting on Sept 7 adding pressure to oil prices. 'Opec+ retains a substantial amount of spare production capacity, and markets are now watching closely to see whether the group will tap into it,' StoneX analyst Alex Hodes said. 'So far, there are no clear signals that Opec+ intends to deploy this additional capacity, but the possibility remains on the table,' he added. Analysts at Goldman Sachs expect the actual increase in supply from the eight Opec+ countries that have raised output since March will be 1.7 million bpd because other members have cut output after overproducing. Investors also continued to digest the impact of the latest US tariffs on exports from dozens of trading partners, and remain wary of further US sanctions on Russia. US President Donald Trump has threatened to impose 100 per cent secondary tariffs on Russian crude buyers as he seeks to pressure Moscow into halting its war in Ukraine. Trump on Monday said he will substantially raise tariffs on India over its purchases of Russian oil, after two Indian government sources told Reuters over the weekend that the country will keep buying oil from Moscow despite Trump's threats. That development helped limit oil's losses. About 1.7 million bpd of crude supply will be at risk if Indian refiners stop buying Russian oil, ING analysts said in a note. 'All eyes in the market will now shift to US President Trump's decision on Russia this Friday and whether he targets buyers of Russian oil with secondary sanctions/tariffs or not,' UBS analyst Giovanni Staunovo said. REUTERS
Mint
04-08-2025
- Business
- Mint
Oil falls as OPEC output hike adds to oversupply concerns
By Shariq Khan and Enes Tunagur NEW YORK/LONDON (Reuters) -Oil prices fell to their lowest in a week on Monday after OPEC agreed to another large output increase in September, adding to oversupply concerns after U.S. data showed lacklustre fuel demand in the top consuming nation. Brent crude futures fell 43 cents, or 0.6%, to $69.24 a barrel by 11:39 a.m. ET (1539 GMT), while U.S. West Texas Intermediate crude declined by 48 cents, or 0.7%, to $66.85 a barrel. Both contracts were down more than 2% earlier in the session and hit the lowest in a week, after declining close to 3% on Friday. The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC , agreed on Sunday to raise oil production by 547,000 barrels per day (bpd) for September. The latest in a series of accelerated output increases aimed at capturing market share was in line with market expectations and marks a full and early reversal of the group's largest tranche of output cuts, amounting to about 2.5 million bpd, or about 2.4% of global demand. While the group cited healthy market fundamentals to back its decision, data released by the U.S. government last week showed the weakest gasoline demand in May, the start of the country's summer driving season, since the COVID-19 pandemic of 2020. The data also showed U.S. oil production at a monthly record in May, adding to global oversupply concerns. Oil traders are now hedging for the possibility of further supply increases from OPEC , with potential discussions to unwind a further 1.65 million bpd of cuts at the group's next meeting on September 7 adding pressure to oil prices. "OPEC retains a substantial amount of spare production capacity, and markets are now watching closely to see whether the group will tap into it," StoneX analyst Alex Hodes said. "So far, there are no clear signals that OPEC intends to deploy this additional capacity, but the possibility remains on the table," he added. Analysts at Goldman Sachs expect that the actual increase in supply from the eight OPEC countries that have raised output since March will be 1.7 million bpd because other members have cut output after overproducing. Investors also continued to digest the impact of the latest U.S. tariffs on exports from dozens of trading partners and remain wary of further U.S. sanctions on Russia. U.S. President Donald Trump has threatened to impose 100% secondary tariffs on Russian crude buyers as he seeks to pressure Moscow into halting its war in Ukraine. Trump on Monday said he will substantially raise tariffs on India over its purchases of Russian oil, after two Indian government sources told Reuters over the weekend that the country will keep buying oil from Moscow despite Trump's threats. That helped limit oil's losses. About 1.7 million bpd of crude supply will be at risk if Indian refiners stop buying Russian oil, ING analysts said in a note.
Mint
04-08-2025
- Business
- Mint
Oil falls as OPEC output hike adds to oversupply concerns
By Shariq Khan and Enes Tunagur NEW YORK/LONDON (Reuters) -Oil prices fell to their lowest in a week on Monday after OPEC agreed to another large output increase in September, adding to oversupply concerns after U.S. data showed lacklustre fuel demand in the top consuming nation. Brent crude futures fell 43 cents, or 0.6%, to $69.24 a barrel by 11:39 a.m. ET (1539 GMT), while U.S. West Texas Intermediate crude declined by 48 cents, or 0.7%, to $66.85 a barrel. Both contracts were down more than 2% earlier in the session and hit the lowest in a week, after declining close to 3% on Friday. The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC , agreed on Sunday to raise oil production by 547,000 barrels per day (bpd) for September. The latest in a series of accelerated output increases aimed at capturing market share was in line with market expectations and marks a full and early reversal of the group's largest tranche of output cuts, amounting to about 2.5 million bpd, or about 2.4% of global demand. While the group cited healthy market fundamentals to back its decision, data released by the U.S. government last week showed the weakest gasoline demand in May, the start of the country's summer driving season, since the COVID-19 pandemic of 2020. The data also showed U.S. oil production at a monthly record in May, adding to global oversupply concerns. Oil traders are now hedging for the possibility of further supply increases from OPEC , with potential discussions to unwind a further 1.65 million bpd of cuts at the group's next meeting on September 7 adding pressure to oil prices. "OPEC retains a substantial amount of spare production capacity, and markets are now watching closely to see whether the group will tap into it," StoneX analyst Alex Hodes said. "So far, there are no clear signals that OPEC intends to deploy this additional capacity, but the possibility remains on the table," he added. Analysts at Goldman Sachs expect that the actual increase in supply from the eight OPEC countries that have raised output since March will be 1.7 million bpd because other members have cut output after overproducing. Investors also continued to digest the impact of the latest U.S. tariffs on exports from dozens of trading partners and remain wary of further U.S. sanctions on Russia. U.S. President Donald Trump has threatened to impose 100% secondary tariffs on Russian crude buyers as he seeks to pressure Moscow into halting its war in Ukraine. Trump on Monday said he will substantially raise tariffs on India over its purchases of Russian oil, after two Indian government sources told Reuters over the weekend that the country will keep buying oil from Moscow despite Trump's threats. That helped limit oil's losses. About 1.7 million bpd of crude supply will be at risk if Indian refiners stop buying Russian oil, ING analysts said in a note. (Reporting by Shariq Khan, Enes Tunagur and Florence TanEditing by Emelia Sithole-Matarise, David Goodman and Susan Fenton)
