Latest news with #TamasVarga
CNBC
7 days ago
- Business
- CNBC
Oil steadies on supply risks, OPEC+ output increase
Oil prices held steady on Wednesday after the U.S. barred Chevron from exporting crude from Venezuela, but an expected decision from OPEC+ later this week to increase production in July capped gains. Brent crude futures was up 6 cents, or 0.1%, to $64.15 a barrel by 0852 GMT, while U.S. West Texas Intermediate crude gained 8 cents, or around 0.2%, at $60.99 a barrel. The Trump administration has issued a new authorization for U.S.-major Chevron that would allow it to keep assets in Venezuela but not export oil or expand activities, Reuters reported on Tuesday citing sources. The downside in oil was also limited by production shutdowns and evacuations in Canada's Alberta province due to a wildfire, and talk of further sanctions on Russia by the U.S., said PVM analyst Tamas Varga. However the possibility OPEC+ may decide to increase production at a meeting this week limited gains in price. A full meeting of the Organization of the Petroleum Exporting Countries and allies, together known as OPEC+, is scheduled for Wednesday. A July output hike could be decided on Saturday when eight members of the group hold talks, according to sources. Despite this, prices could respond positively in coming weeks and months if there is progress on global trade talks or resolving U.S.-Iranian frictions, said Tim Waterer, chief market analyst at KCM Trade in a note. Iran's nuclear chief Mohammad Eslami said on Wednesday it might allow the U.N. nuclear watchdog to send U.S. inspectors to visit Iranian nuclear sites if Tehran's nuclear talks with Washington succeed.
CNA
7 days ago
- Business
- CNA
Oil steadies on supply risks, OPEC+ output increase
LONDON :Oil prices held steady on Wednesday after the U.S. barred Chevron from exporting crude from Venezuela, but an expected decision from OPEC+ later this week to increase production in July capped gains. Brent crude futures was up 6 cents, or 0.1 per cent, to $64.15 a barrel by 0852 GMT, while U.S. West Texas Intermediate crude gained 8 cents, or around 0.2 per cent, at $60.99 a barrel. The Trump administration has issued a new authorisation for U.S.-major Chevron that would allow it to keep assets in Venezuela but not export oil or expand activities, Reuters reported on Tuesday citing sources. The downside in oil was also limited by production shutdowns and evacuations in Canada's Alberta province due to a wildfire, and talk of further sanctions on Russia by the U.S., said PVM analyst Tamas Varga. However the possibility OPEC+ may decide to increase production at a meeting this week limited gains in price. A full meeting of the Organization of the Petroleum Exporting Countries and allies, together known as OPEC+, is scheduled for Wednesday. A July output hike could be decided on Saturday when eight members of the group hold talks, according to sources. Despite this, prices could respond positively in coming weeks and months if there is progress on global trade talks or resolving U.S.-Iranian frictions, said Tim Waterer, chief market analyst at KCM Trade in a note. Iran's nuclear chief Mohammad Eslami said on Wednesday it might allow the U.N. nuclear watchdog to send U.S. inspectors to visit Iranian nuclear sites if Tehran's nuclear talks with Washington succeed.
International Business Times
13-05-2025
- Business
- International Business Times
Global Oil Prices Stabilize Despite Hopes for US-ChinaTrade Resolution
Oil prices were largely flat on Tuesday as the market weighed brimming global supplies against the prospect of new U.S. sanctions against Iran. A report in early May that U.S.-China tensions were easing lifted investor sentiment temporarily. There is still doubt whether this truce will end in a trade deal, leaving oil markets on a cautious footing. Brent crude futures were up 9 cents at $65.05 a barrel, and U.S. oil gained 11 cents to end at $62.06. The minor advances came after a strong day on Monday when both benchmarks jumped more than 4%. That initial surge was prompted by news of the easing of tariffs between Washington and Beijing for at least 90 days, with the same positive effect on Wall Street. But analysts caution that the positive sentiment may be short-lived. Tamas Varga of PVM Oil Associates warned that the recent market rally could fade. "With a strong increase in OPEC+ production expected over the coming months, the upside potential may soon run out," he said. The Organization of the Petroleum Exporting Countries (OPEC) has already raised output by more than anticipated since April. Reports indicate that oil production in May alone could be more than 400,000 barrels a day higher. This additional supply may cap price growth, especially if demand does not pick up to absorb it. Refined fuel markets remain resilient despite global demand concerns. Gasoline and diesel prices have stayed strong. Pretax earnings from this month through June totaled $900 million, according to Jason Gammel, an energy analyst at Jefferies. A key factor is the reduced refining capacity in regions such as the U.S. and Europe. With some refineries shut down for maintenance or due to unplanned outages, gasoline and diesel markets have become tighter. This shortfall is driving increased imports, raising the risk of price spikes if supply disruptions persist. Experts also note that this straitened refining environment leaves the market erring with volatility. "The pressure on refining systems is such that any small hiccup can rapidly lead to price implications," JPMorgan analysts said. Additionally, the U.S. continues to face concerns regarding future energy policy, which is contributing to further market anxiety. Political opposition to alternative energy projects, like offshore wind, has spooked some investors and added to market instability. For now, oil prices may well remain stuck in a tight range as the market waits for clearer signals on supply, demand, and global trade talks.
Time of India
13-05-2025
- Business
- Time of India
US crude oil climbs more than $1 on Saudi investment
U.S. crude oil futures climbed more than $1 a barrel on Tuesday as the White House announced Saudi Arabia's plans to invest $600 billion in the United States. Brent crude futures rose 88 cents, or about 1.35%, to $65.84 a barrel by 1417 GMT. U.S. West Texas Intermediate (WTI) crude was up $1.13, or about 1.82%, at $63.08. The two benchmarks rose by about 4% or more in the previous session after the U.S. and China agreed on sharp reductions to tariffs for at least 90 days, which also boosted Wall Street stocks and the dollar. U.S. President Donald Trump was visiting Saudi Arabia on Tuesday as part of a trip through the Middle East. The U.S. also unveiled a defense sale agreement with Saudi Arabia worth $142 billion. Live Events Part of the new Saudi investment will go to Saudi Aramco's Motiva refining and petrochemical complex in Port Arthur, Texas. The market is now evaluating the impact of the trade truce, said PVM analyst Tamas Varga. "Coupled with the scheduled steep increase in OPEC+ supply in May and June, the upside might prove limited." The Organization of the Petroleum Exporting Countries (OPEC) has raised oil output by more than previously expected since April, with May output likely to increase by 411,000 barrels per day. Meanwhile, sources told Reuters that Saudi Arabia's crude oil supply to China will hold steady in June after hitting its highest in more than a year in the previous month after an OPEC+ decision to increase output. It is the second-largest crude supplier to China behind Russia. Elsewhere, signs broadly point to demand for refined fuel remaining strong. "Despite the deteriorating outlook for crude demand, positive signals from the fuel markets cannot be overlooked," JPMorgan analysts said in a note. "Although international crude prices have declined by 22% since their peak on January 15, both refined product prices and refining margins have remained stable." Reduced refining capacity - mostly in the U.S. and Europe - is tightening gasoline and diesel balances, increasing reliance on imports and raising susceptibility to price spikes during maintenance and unplanned outages, they added.
The Star
13-05-2025
- Business
- The Star
Oil prices steady as market weighs US-China trade developments
LONDON: Oil prices held steady on Tuesday, weighed down by rising supplies and caution over whether the pause in the U.S.-China trade war will lead to a longer-term deal. Brent crude futures gained 9 cents, or 0.14%, to $65.05 a barrel by 0803 GMT. U.S. West Texas Intermediate (WTI) crude was up 11 cents, or about 0.2%, at $62.06. The two benchmarks rose by about 4% or more in the previous session after the U.S. and China agreed on sharp reductions to tariffs for at least 90 days, which also boosted Wall Street stocks and the dollar. The market is now evaluating the impact of the trade truce, said PVM analyst Tamas Varga. "Coupled with the scheduled steep increase in OPEC+ supply in May and June, the upside might prove limited." The Organization of the Petroleum Exporting Countries (OPEC) has raised oil output by more than previously expected since April, with May output likely to increase by 411,000 barrels per day. There are signs, however, that demand for refined fuel remains strong. "Despite the deteriorating outlook for crude demand, positive signals from the fuel markets cannot be overlooked," JPMorgan analysts said in a note. "Although international crude prices have declined by 22% since their peak on January 15, both refined product prices and refining margins have remained stable." Reduced refining capacity - mostly in the U.S. and Europe - is tightening gasoline and diesel balances, increasing reliance on imports and raising susceptibility to price spikes during maintenance and unplanned outages, they added. - Reuters
