Latest news with #SupplyConcerns
The National
8 hours ago
- Business
- The National
Oil prices fall more than 1% amid Trump-Putin summit in Alaska
Oil prices fell by more than 1 per cent to end the week lower as leaders of the US and Russia held a meeting in Alaska to end the Ukraine war that has shaken oil markets for more than three years with supply concerns. Brent, the benchmark for two thirds of the world's oil, settled 1.48 per cent lower at $65.85 a barrel, while West Texas Intermediate – the gauge that tracks US crude – was down 1.81 per cent at $62.8 a barrel. For the week, Brent dropped 1.1 per cent, while WTI eased 1.7 per cent. Russian President Vladimir Putin and US President Donald Trump met in Alaska on Friday to hold discussions to end Ukraine war that has killed hundreds of thousands of people and disrupted global financial and commodity markets. However, the summit ended without a ceasefire deal but Mr Trump described his meeting with his Russian counterpart as 'productive', adding that they 'really made some great progress' on ending the war. 'There were many, many points that we agreed on, most of them, I would say, a couple of big ones that we haven't quite got there, but we've made some headway,' Mr Trump told reporters. 'I've always had a fantastic relationship with President Putin, with Vladimir.' Mr Trump offered no further details of their discussions in an interview with Fox News after the meeting, but raised the possibility of another summit that included Ukrainian President Volodymyr Zelensk yy. "While there was no ceasefire, US President Trump made also clear that he doesn't plan to penalise the largest buyer of Russian oil, China," Giovanni Staunovo, a strategist at Swiss bank UBS told The National. "I guess market participants will today track comments from European leaders, but for now Russian supply disruption risks will remain contained." Oil markets were heavily affected after war broke out between Russia and Ukraine more than three years ago. Oil prices surged to $140 a barrel in March 2022, following Russia's invasion of Ukraine and the subsequent sanctions by the US and the UK on the import of crude from Moscow. However, prices fell in the subsequent months, amid a number of factors impacting markets, including concerns of a global economic slowdown, high inflation and a China slowdown. A ceasefire deal between Ukraine and Russia could have a bearish effect on oil markets as more Russian oil could flow into global markets if sanctions are eased on Moscow. However, if the peace agreement is not reached between the two countries, it will support oil prices by limiting Russian supply. 'US crude recently breached the $65 support and is consolidating in a medium-term bearish zone, where ample supply and cloudy demand argue for further downside – though a softer dollar is cushioning the slide,' said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. Supply forecast for 2025 The International Energy Agency this week raised its forecast for oil supply growth this year following a decision by the Opec producer group to hike production and lowered its demand forecast due to lacklustre demand across the major economies. The IEA expects world oil supply to rise by about 370,000 barrels a day to 2.5 million barrels a day in 2025 and by 620,000 bpd to 1.9 million bpd in 2026, after the eight Opec members this month decided to raise production by another 547,000 bpd in September, fully unwinding the 2.2 million bpd cuts agreed to in November 2023. World oil demand will rise by 680,000 bpd this year, down from 700,000 bpd previously forecast, the Paris-based agency said. 'The latest data show lacklustre demand across the major economies and, with consumer confidence still depressed, a sharp rebound appears remote,' the Paris-based agency said. Consumption in emerging and developing economies has been weaker than expected, with China, Brazil, Egypt and India all revised down compared with last month's IEA report.
The National
a day ago
- Business
- The National
Oil prices edge lower before Trump-Putin summit in Alaska
Oil prices fell on Friday ahead of a meeting between the leaders of the US and Russia to end the war in Ukraine that has shaken oil markets for more than three years with supply concerns. Brent, the benchmark for two thirds of the world's oil, was down by 0.60 per cent at 12.06pm UAE time to $66.44 a barrel, while West Texas Intermediate – the gauge that tracks US crude – was trading 0.66 per cent lower at $63.54 a barrel. Russian President Vladimir Putin and US President Donald Trump made comments praising each other before the meeting, raising hopes of an end to the war, that has killed hundreds of thousands of people and disrupted global financial and commodity markets. Mr Putin on Thursday said the US was making 'sincere efforts' to end the war, while Mr Trump said that he believed Russian President was ready to negotiate. 'I believe now, he's convinced that he's going to make a deal. He's going to make a deal. I think he's going to, and we're going to find out,' Mr Trump said in an interview on Fox News Radio on Thursday. Mr Putin in televised comments, meanwhile, said that the US was 'making, in my opinion, quite energetic and sincere efforts to stop the hostilities, stop the crisis and reach agreements that are of interest to all parties involved in this conflict'. Oil markets were heavily affected after war broke out between Russia and Ukraine more than three years ago. Oil prices surged to $140 a barrel in March 2022, following Russia's invasion of Ukraine and the subsequent sanctions by the US and the UK on the import of crude from Moscow. However, prices fell in the subsequent months, amid a number of factors impacting markets, including concerns of a global economic slowdown, high inflation and a China slowdown. A ceasefire deal between Ukraine and Russia after the talks in Alaska could have a bearish effect on oil markets as more Russian oil could flow into global markets if sanctions are eased on Moscow. However, if the two countries do not agree on a deal, it will support oil prices by limiting Russian supply. 'The upcoming meeting looks more likely to sour than succeed, with oil flows potentially caught in the crossfire,' said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. 'US crude recently breached the $65 support and is consolidating in a medium-term bearish zone, where ample supply and cloudy demand argue for further downside – though a softer dollar is cushioning the slide.' Supply forecast for 2025 The International Energy Agency this week raised its forecast for oil supply growth this year following a decision by the Opec producer group to hike production and lowered its demand forecast due to lacklustre demand across the major economies. The IEA expects world oil supply to rise by about 370,000 barrels a day to 2.5 million barrels a day in 2025 and by 620,000 bpd to 1.9 million bpd in 2026, after the eight Opec members this month decided to raise production by another 547,000 bpd in September, fully unwinding the 2.2 million bpd cuts agreed to in November 2023. World oil demand will rise by 680,000 bpd this year, down from 700,000 bpd previously forecast, the Paris-based agency said. 'The latest data show lacklustre demand across the major economies and, with consumer confidence still depressed, a sharp rebound appears remote,' the Paris-based agency said. Consumption in emerging and developing economies has been weaker than expected, with China, Brazil, Egypt and India all revised down compared with last month's IEA report.
Arab News
a day ago
- Business
- Arab News
Oil Updates — prices maintain gains ahead of Trump-Putin summit
NEW YORK: Oil prices nudged higher on Friday to fresh one-week highs after US President Donald Trump warned of 'consequences' if Russia blocked a Ukraine peace deal, injecting concerns about supply. Sentiment was also boosted by strong economic data out of Japan, which is among the largest global crude importers. Brent crude futures gained 16 cents, or 0.2 percent, to $67.00 a barrel by 03:17 a.m. Saudi time. US West Texas Intermediate crude futures were up 14 cents, also 0.2 percent, to $64.10. All eyes are on Friday's meeting of Trump and Russian leader Vladimir Putin in Alaska, where a ceasefire in the Ukraine war is at the top of the agenda. A continued conflict between Russia and Ukraine supports oil markets by limiting the supply of Russian oil. Trump, however, also said he believes Russia is prepared to end the war in Ukraine. Fresh Japanese government data released on Friday showed the economy expanded an annualised 1.0 percent in the April-June quarter, compared with a median market forecast for a 0.4 percent increase. The rise in gross domestic product translated into a quarterly increase of 0.3 percent, compared with a median estimate of a 0.1 percent increase. Strong economic activity typically spurs oil consumption. Prospects of higher-for-longer US interest rates, however, kept oil prices from rising further. Higher-than-expected inflation data and weak jobs numbers out of the US raised concerns that the Federal Reserve would keep interest rates high, usually a dampener of oil consumption.
Yahoo
2 days ago
- Business
- Yahoo
Oil maintains gains ahead of Trump-Putin summit
(Reuters) -Oil prices nudged higher on Friday to fresh one-week highs after U.S. President Donald Trump warned of "consequences" if Russia blocked a Ukraine peace deal, injecting concerns about supply. Sentiment was also boosted by strong economic data out of Japan, which is among the largest global crude importers. Brent crude futures gained 16 cents, or 0.2%, to $67.00 a barrel by (0017 GMT). U.S. West Texas Intermediate crude futures were up 14 cents, also 0.2%, to $64.10. All eyes are on Friday's meeting of Trump and Russian leader Vladimir Putin in Alaska where a ceasefire in the Ukraine war is at the top of the agenda. A continued conflict between Russia and Ukraine supports oil markets by limiting the supply of Russian oil. Trump, however, also said he believes Russia is prepared to end the war in Ukraine. Fresh Japanese government data released on Friday showed the economy expanded an annualised 1.0% in the April-June quarter, compared with a median market forecast for a 0.4% increase. The rise in gross domestic product (GDP) translated into a quarterly increase of 0.3%, compared with a median estimate of a 0.1% increase. Strong economic activity typically spurs oil consumption. Prospects of higher-for-longer U.S. interest rates, however, kept oil prices from rising further. Higher-than-expected inflation data and weak jobs numbers out of the U.S. raised concerns that the Federal Reserve would keep interest rates high, usually a dampener of oil consumption.
CNA
2 days ago
- Business
- CNA
Oil maintains gains ahead of Trump-Putin summit
Oil prices nudged higher on Friday to fresh one-week highs after U.S. President Donald Trump warned of "consequences" if Russia blocked a Ukraine peace deal, injecting concerns about supply. Sentiment was also boosted by strong economic data out of Japan, which is among the largest global crude importers. Brent crude futures gained 16 cents, or 0.2 per cent, to $67.00 a barrel by (0017 GMT). U.S. West Texas Intermediate crude futures were up 14 cents, also 0.2 per cent, to $64.10. All eyes are on Friday's meeting of Trump and Russian leader Vladimir Putin in Alaska where a ceasefire in the Ukraine war is at the top of the agenda. A continued conflict between Russia and Ukraine supports oil markets by limiting the supply of Russian oil. Trump, however, also said he believes Russia is prepared to end the war in Ukraine. Fresh Japanese government data released on Friday showed the economy expanded an annualised 1.0 per cent in the April-June quarter, compared with a median market forecast for a 0.4 per cent increase. The rise in gross domestic product (GDP) translated into a quarterly increase of 0.3 per cent, compared with a median estimate of a 0.1 per cent increase. Strong economic activity typically spurs oil consumption. Prospects of higher-for-longer U.S. interest rates, however, kept oil prices from rising further. Higher-than-expected inflation data and weak jobs numbers out of the U.S. raised concerns that the Federal Reserve would keep interest rates high, usually a dampener of oil consumption.
