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Business Recorder
21 hours ago
- Business
- Business Recorder
Oil ticks down on reports of US-Russia deal
HOUSTON: Oil prices edged lower on Friday and were poised for the steepest weekly losses since late June on reports of a deal between U.S. and Russia, and a tariff-hit economic outlook. Brent crude futures were down 7 cents at $66.36 a barrel by 11:18 a.m ET (1518 GMT). U.S. West Texas Intermediate crude futures eased 21 cents, or 0.3%, to $63.67. Brent was on track to fall 4.8% over the week, while WTI was set to finish 5.5% lower than last Friday's close. Washington and Moscow are aiming to reach a deal to halt the war in Ukraine that would lock in Russia's occupation of territory seized during its military invasion, Bloomberg News reported on Friday. U.S. and Russian officials are working towards an agreement on territories for a planned summit meeting between U.S. President Donald Trump and his Russian counterpart Vladimir Putin as early as next week, the report said, citing people familiar with the matter. The potential meeting raises expectations of a diplomatic end to the war in Ukraine, which could lead to eased sanctions on Russia, and come as trade tensions have been on the rise between Trump and buyers of Russian oil. This week, Trump threatened to increase tariffs on India if it kept buying Russian oil. Trump also said China, the largest buyer of Russian crude, could be hit with tariffs similar to those levied against Indian imports. Meanwhile, higher U.S. tariffs on imports from a host of trade partners went into effect on Thursday, raising concern over economic activity and demand for crude oil, ANZ Bank analysts said in a note. 'Various non-oil considerations are at play, including fears over the impact of tariffs and the headlines flying over the last few days regarding a Trump and Putin meeting in the near term,' said Neil Crosby, an energy market analyst at Sparta Commodities. 'Headline risk is particularly strong currently with flip-flopping regarding who will turn up to a meeting over Ukraine and under what circumstances.' Trump on Thursday also said he will nominate Council of Economic Advisers Chairman Stephen Miran to serve out the final few months of a newly vacant seat at the Federal Reserve, fuelling expectations of a more dovish policy ahead. Lower interest rates reduce consumer borrowing costs and can boost economic growth and demand for oil. The dollar firmed on Friday but headed for a weekly fall. A stronger dollar hurts demand for dollar-denominated crude from foreign buyers.
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Business Standard
31-07-2025
- Business
- Business Standard
Asia likely to step up US WTI oil imports as West Asia prices rise
Asia is expected to step up imports of US West Texas Intermediate crude in the fourth quarter after Middle East oil prices strengthened and opened the arbitrage window, trade sources said. Middle East crude benchmarks Dubai and Murban gained this month on the back of robust demand for high-sulphur oil in Asia, narrowing their price gaps with light-sweet US WTI oil, they said. WTI's arbitrage has been wide open to Asia for the past week for cargoes arriving in early November, said June Goh, a senior analyst at Sparta Commodities. US producer Occidental has sold WTI crude to Japanese refiner Taiyo Oil, the sources said. The cargo was sold at a premium of about $3.50 a barrel to October Dubai quotes for October delivery, one of the sources said. WTI crude could be delivered at 50-75 cents a barrel lower versus similar quality Murban oil to north Asian refiners depending on suppliers, a Singapore-based trader said. Two other traders said WTI is at least 30 cents cheaper than the light-sour Murban grade. Murban's supply has also tightened after Abu Dhabi National Oil Co reduced exports of its flagship grade by diverting the oil to its domestic refinery, the sources said, supporting the benchmark. "We anticipate more Asian buyers to secure WTI cargoes especially with Murban looking expensive whilst taking opportunity to diversify against AG (Arabian Gulf) crude," Goh said. Middle East crude prices are also supported by a threat by US President Donald Trump to impose secondary tariffs on countries that buy Russian oil, she said, adding that Indian refiners will look to buy oil from the Gulf to replace Russian supplies. Trump on Monday shortened a deadline for Moscow to make progress toward a Ukraine war peace deal or see its oil customers slapped with secondary tariffs of 100% in 10 to 12 days, reflecting his growing frustration with Russia's actions. China, India and Turkey are the key importers of Russian crude.
Reuters
31-07-2025
- Business
- Reuters
Asia steps up US WTI oil imports as Middle East prices rise, sources say
SINGAPORE/HOUSTON, July 31 (Reuters) - Asia is expected to step up imports of U.S. West Texas Intermediate crude in the fourth quarter after Middle East oil prices strengthened and opened the arbitrage window, trade sources said. Middle East crude benchmarks Dubai and Murban gained this month on the back of robust demand for high-sulphur oil in Asia, narrowing their price gaps with light-sweet U.S. WTI oil, they said. WTI's arbitrage has been wide open to Asia for the past week for cargoes arriving in early November, said June Goh, a senior analyst at Sparta Commodities. U.S. producer Occidental (OXY.N), opens new tab has sold WTI crude to Japanese refiner Taiyo Oil, the sources said. The cargo was sold at a premium of about $3.50 a barrel to October Dubai quotes for October delivery, one of the sources said. WTI crude could be delivered at 50-75 cents a barrel lower versus similar quality Murban oil to north Asian refiners depending on suppliers, a Singapore-based trader said. Two other traders said WTI is at least 30 cents cheaper than the light-sour Murban grade. Murban's supply has also tightened after Abu Dhabi National Oil Co reduced exports of its flagship grade by diverting the oil to its domestic refinery, the sources said, supporting the benchmark. "We anticipate more Asian buyers to secure WTI cargoes especially with Murban looking expensive whilst taking opportunity to diversify against AG (Arabian Gulf) crude," Goh said. Middle East crude prices are also supported by a threat by U.S. President Donald Trump to impose secondary tariffs on countries that buy Russian oil, she said, adding that Indian refiners will look to buy oil from the Gulf to replace Russian supplies. Trump on Monday shortened a deadline for Moscow to make progress toward a Ukraine war peace deal or see its oil customers slapped with secondary tariffs of 100% in 10 to 12 days, reflecting his growing frustration with Russia's actions. China, India and Turkey are the key importers of Russian crude.
Wall Street Journal
09-07-2025
- Business
- Wall Street Journal
Tight Diesel Supplies Threaten To Raise Transport, Heating Costs
While the oil market frets about an eventual oversupply of crude oil pushing prices down to levels that will curb investment, the world is looking at a shortage of diesel fuel that threatens to raise transport and heating costs next winter. Refining margins-the difference between the price of crude oil and revenue from the refined products-were poor in the fourth quarter of 2024 and prompted refiners to run at slower rates, said James Noel-Beswick, an analyst at Sparta Commodities.
News18
23-06-2025
- Business
- News18
Oil Prices Surge To 5-Month Highs Amid US-Israel Strikes On Iran
Last Updated: Oil prices hit their highest since January as the US joined Israel in attacking Iran's nuclear sites, raising supply concerns. Oil prices jumped on Monday to their highest since January as Washington's weekend move to join Israel in attacking Iran's nuclear facilities stoked supply worries. Brent crude futures rose $1.88 or 2.44% at $78.89 a barrel as of 1122 GMT. U.S. West Texas Intermediate crude advanced $1.87 or 2.53% at $75.71. Both contracts jumped by more than 3% earlier in the session to $81.40 and $78.40, respectively, five-month highs, before giving up some gains. The rise in prices came after U.S. President Donald Trump said he had 'obliterated" Iran's main nuclear sites in strikes over the weekend, joining an Israeli assault in an escalation of conflict in the Middle East as Tehran vowed to defend itself. Iran is OPEC's third-largest crude producer. Market participants expect further price gains amid mounting fears that an Iranian retaliation may include a closure of the Strait of Hormuz, through which roughly a fifth of global crude supply flows. Iran's Press TV reported that the Iranian parliament approved a measure to close the strait. Iran has in the past threatened to close the strait but has never followed through on the move. 'The risks of damage to oil infrastructure … have multiplied," said Sparta Commodities senior analyst June Goh. Although there are alternative pipeline routes out of the region, there will still be crude volumes that cannot be fully exported out if the Strait of Hormuz becomes inaccessible. Shippers will increasingly stay out of the region, she added. Brent has risen 13% since the conflict began on June 13, while WTI has gained around 10%. The current geopolitical risk premium is unlikely to last without tangible supply disruptions, analysts said. Meanwhile, the unwinding of some of the long positions accumulated following a recent price rally could cap an upside to oil prices, Ole Hansen, head of commodity strategy at Saxo Bank, wrote in a market commentary on Sunday. First Published:
