Latest news with #SarahQureshi
Yahoo
30-05-2025
- Business
- Yahoo
Oil price outlook weakens on OPEC+ hikes, lingering trade concerns
By Sarah Qureshi and Kavya Balaraman (Reuters) - Analysts have revised down their oil price forecasts for the third consecutive month as swelling OPEC+ supply and lingering uncertainty around the impact of trade disputes on fuel demand weigh on prices, a Reuters poll showed. A survey of 40 economists and analysts in May forecasts Brent crude will average $66.98 per barrel in 2025, down from April's $68.98 forecast, while U.S. crude is seen at $63.35, below last month's $65.08 estimate. Prices have averaged roughly $71.08 and $67.56 so far this year respectively, as per LSEG data. While tensions have somewhat eased between the U.S. and other trade partners, trade conflicts still loom as a key factor that could weaken oil demand, said Tobias Keller, analyst at UniCredit. "On the supply side, oil prices will be heavily influenced by OPEC+ production decisions, while geopolitical tensions... pose ongoing risks of disruption and price volatility," Keller added. Eight OPEC+ members began unwinding output cuts earlier this year, agreeing to larger-than-expected increases of 411,000 bpd for May and June. The members may decide on a similar output hike for July at a meeting on Saturday, sources have told Reuters. The move "seems driven by a desire to punish non-compliant members rather than support oil prices at any specific level. Compliance will be hard to enforce, especially in Kazakhstan," said Suvro Sarkar, lead energy analyst at DBS Bank. Meanwhile, analysts polled by Reuters expect global oil demand to grow by an average of 775,000 barrels per day in 2025, with many pointing to elevated trade uncertainty and the risk of economic slowdown as key concerns. This compares to the 740,000 bpd 2025 average demand growth forecast from the International Energy Agency earlier this month. With U.S. consumption and China oil demand constrained by fuel efficiency gains, economic uncertainty and the shift to electric mobility, "demand growth is largely coming from the resource nations themselves," said Norbert Ruecker, head of economics & next generation research at Julius Baer. Meanwhile, Russia's war in Ukraine continues to pose a geopolitical risk premium for oil. Analysts say markets have largely priced in the uncertainty. "Potential de-escalation efforts and the possibility of lifting sanctions on Russian oil could further lower prices," said Sarkar. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
Oil price outlook weakens on OPEC+ hikes, lingering trade concerns: Reuters poll
By Sarah Qureshi and Kavya Balaraman (Reuters) - Analysts have revised down their oil price forecasts for the third consecutive month as swelling OPEC+ supply and lingering uncertainty around the impact of trade disputes on fuel demand weigh on prices, a Reuters poll showed. A survey of 40 economists and analysts in May forecasts Brent crude will average $66.98 per barrel in 2025, down from April's $68.98 forecast, while U.S. crude is seen at $63.35, below last month's $65.08 estimate. Prices have averaged roughly $71.08 and $67.56 so far this year respectively, as per LSEG data. While tensions have somewhat eased between the U.S. and other trade partners, trade conflicts still loom as a key factor that could weaken oil demand, said Tobias Keller, analyst at UniCredit. "On the supply side, oil prices will be heavily influenced by OPEC+ production decisions, while geopolitical tensions... pose ongoing risks of disruption and price volatility," Keller added. Eight OPEC+ members began unwinding output cuts earlier this year, agreeing to larger-than-expected increases of 411,000 bpd for May and June. The members may decide on a similar output hike for July at a meeting on Saturday, sources have told Reuters. The move "seems driven by a desire to punish non-compliant members rather than support oil prices at any specific level. Compliance will be hard to enforce, especially in Kazakhstan," said Suvro Sarkar, lead energy analyst at DBS Bank. Meanwhile, analysts polled by Reuters expect global oil demand to grow by an average of 775,000 barrels per day in 2025, with many pointing to elevated trade uncertainty and the risk of economic slowdown as key concerns. This compares to the 740,000 bpd 2025 average demand growth forecast from the International Energy Agency earlier this month. With U.S. consumption and China oil demand constrained by fuel efficiency gains, economic uncertainty and the shift to electric mobility, "demand growth is largely coming from the resource nations themselves," said Norbert Ruecker, head of economics & next generation research at Julius Baer. Meanwhile, Russia's war in Ukraine continues to pose a geopolitical risk premium for oil. Analysts say markets have largely priced in the uncertainty. "Potential de-escalation efforts and the possibility of lifting sanctions on Russian oil could further lower prices," said Sarkar. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
Gold falls over 1% on dollar uptick, profit taking
By Sarah Qureshi (Reuters) - Gold fell more than 1% on Thursday as the U.S. dollar strengthened and investors booked profits after prices touched a two-week high earlier in the session. Spot gold fell 0.4% to $3,301.37 an ounce, by 1043 a.m. ET (1443 GMT). Prices hit their highest level since May 9 earlier in the session and recorded gains in the previous three sessions. U.S. gold futures also fell 0.4% to $3,301.00. The dollar index rose 0.3%, making bullion more expensive for foreign currency holders. [USD/] "We're seeing some profit taking pressure from recent gains and a firmer U.S. dollar index is another bearish factor," Jim Wycoff, senior analyst at Kitco Metals. "The specter of a shaky global bond market is going to be a bullish underlying factor for the gold market that's going to limit the downside." Bond vigilantes continued to stalk global debt markets as the U.S. House of Representatives passed President Donald Trump's "big beautiful" tax bill by a single vote. The bill will add about $3.8 trillion to the federal government's $36.2 trillion in debt over the next decade, according to the nonpartisan Congressional Budget Office. Gold is used as a safe store of value during times of political and financial uncertainty. Data showed U.S. business activity picked up in May amid a truce in the trade war between Washington and China, but Trump's sweeping tariffs on imported goods raised prices for companies and consumers. Trade deals from the U.S. administration are expected to be announced in the coming weeks and these will play a crucial role in shaping gold prices for the remainder of the year, said Zain Vawda, analyst at MarketPulse by OANDA. Elsewhere, spot silver fell 1.1% to $32.99 an ounce, platinum edged 0.1% lower to $1,077.92 and palladium lost 2.7% to $1,009.89.
Yahoo
06-05-2025
- Business
- Yahoo
Gold gains on dollar weakness, safe-haven demand
(Updates prices for market close) By Sarah Qureshi (Reuters) - Gold prices gained more than 2% on Monday, driven by a weaker dollar and safe-haven demand, while the market awaits a policy decision from the U.S. Federal Reserve later in the week. Spot gold was up 2.3% at $3,315.09 an ounce at 1:52 p.m. ET (1752 GMT). U.S. gold futures settled 2.4% higher at $3,322.3. The dollar index fell 0.1%, making bullion less expensive for other currency holders. [USD/] U.S. President Donald Trump announced on Sunday a 100% tariff on movies produced overseas, reigniting concerns about the potential fallout of a global trade war. "We are seeing a continued flow of safe-haven demand, keeping gold prices elevated ... prices are going to trade above $3,000 level at least in the near-term," said Jim Wyckoff, senior analyst at Kitco Metals. "I don't think any change in interest rates is expected at this meeting, but we'll be watching it to see if the Fed is leaning any particular way." Traders await Fed Chair Jerome Powell's comments due on Wednesday to get clues on the central bank's rate path. The Fed has held its policy rate in the 4.25%-4.50% range since December. The Fed is expected to leave interest rates unchanged this meeting, but it may be the last where the outcome is so cut and dry with Trump's tariffs casting a shadow of uncertainty over the economic outlook. Gold, which is considered a hedge against uncertainty and tends to thrive in a low interest rate environment, has hit multiple record highs and gained over 26% so far this year. Goldman Sachs expects gold to continue outperforming silver, but noted that, given the strong correlation in flows, renewed demand for gold in 2025 was likely to boost silver prices too. Spot silver rose 1% to $32.31 an ounce. Meanwhile, platinum fell 0.4% to $956.05 and palladium shed 1.5% to $939.55. (Reporting by Sarah Qureshi and Ashitha Shivaprasad in Bengaluru; Editing by Shailesh Kuber)
Yahoo
11-03-2025
- Business
- Yahoo
Safe-haven gold firms on weaker dollar, growth concerns
By Ashitha Shivaprasad and Sarah Qureshi (Reuters) - Gold prices gained 1% on Tuesday amid a weaker dollar and economic slowdown worries due to tariff wars, while investors strapped in for inflation data that could shed light on the future path of U.S. interest rates. Spot gold was 1% firmer at $2,919.29 an ounce as of 11:09 a.m. ET (1509 GMT). U.S. gold futures were 0.9% higher at $2,926.30. The U.S. dollar index hit its lowest level since early November. A softer dollar makes greenback priced-bullion more affordable for other currency holders. [USD/] "Gold is likely to remain supported amid ongoing market uncertainties, bolstering demand for the safe-haven asset. However, any positive developments in Russia-Ukraine negotiations could reduce risk premiums," said Zain Vawda, market analyst at MarketPulse by OANDA. The tariff policies implemented by U.S. President Donald Trump against key trading partners have caused significant volatility in global markets and heightened concerns about economic growth. Bullion is considered a hedge against uncertainties and tends to thrive in a low-interest environment since it is a non-yielding asset. Market attention will be on Wednesday's U.S. Consumer Price Index and Thursday's Producer Price Index. According to a Reuters poll, February's CPI is expected to have climbed 0.3%. Traders are currently expecting the Federal Reserve to cut interest rates in June. [FEDWATCH] "The gold price is already trading at a very high level due to the sharp rise since the start of the year, which limits the upside potential," Commerzbank said in a note. Spot silver added 2.2% to $32.82 per ounce. Platinum was up 1.9% at $975.95 and palladium gained 0.2% to $944.25. Sign in to access your portfolio
