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Economy ME
an hour ago
- Business
- Economy ME
Oil prices rise with Brent crude up 0.1 percent above $68.50 on strong demand data
Oil prices rose on Thursday, reversing declines seen over the previous three sessions, supported by stronger-than-expected economic data from the world's leading oil consumers and indications of easing trade tensions. Brent crude futures rose by 8 cents, or 0.1 percent, reaching $68.60 a barrel at 06:30 GMT (currently trading above $68.50). Meanwhile, U.S. West Texas Intermediate crude futures increased by 16 cents, or 0.2 percent, to $66.54 (currently trading above $66.45). Both benchmarks had declined by more than 0.2 percent in the previous session. U.S. President Donald Trump stated that letters notifying smaller countries of their U.S. tariff rates would be sent out soon, and he mentioned on Wednesday that he would likely implement a blanket 10 percent or 15 percent tariff on these nations. New agreements with Indonesia and Vietnam were announced this week. Trump also expressed renewed optimism regarding the prospects of a deal with Beijing concerning illicit drugs and hinted that a trade deal with India was very close, while an agreement could potentially be reached with Europe as well. U.S. crude inventories decreased by 3.9 million barrels to 422.2 million barrels last week, according to the Energy Information Administration's report on Wednesday. This decline was steeper than the forecasted 552,000-barrel draw, indicating stronger refinery activity, tighter supply, and increased demand. The latest snapshot of the U.S. economy by the central bank, released on Wednesday, revealed that activity had picked up in recent weeks. However, the outlook was described as 'neutral to slightly pessimistic,' as businesses reported that higher import tariffs were exerting upward pressure on prices. Read more: Crude oil prices climb 0.2 percent to $68.98 amid summer demand expectations, OPEC optimism China's growth and fuel demand In the meantime, data from China indicated that growth slowed in the second quarter, but not as significantly as previously feared, partly due to front-loading to circumvent U.S. tariffs, alleviating concerns about the state of the world's largest crude importer's economy. Additional data showed that China's June crude oil throughput rose by 8.5 percent compared to a year ago, suggesting stronger fuel demand. Oil prices experienced an upswing on Wednesday, driven by expectations of robust summer demand from the world's two largest consumers, the United States and China. However, these gains were tempered by analysts' caution regarding the broader economic landscape. Prices have fluctuated within a narrow range as signs of steady demand, driven by increased travel during the Northern Hemisphere summer, contend with worries that U.S. tariffs on trading partners could hinder economic growth and fuel consumption. Brent crude futures climbed by 13 cents, or 0.2 percent, to $68.84 a barrel by 04:11 GMT. Meanwhile, U.S. West Texas Intermediate crude futures increased by 25 cents, or 0.4 percent, reaching $66.77. This rebound followed two consecutive days of declines, as the market downplayed potential supply disruptions after U.S. President Donald Trump threatened tariffs on Russian oil purchases. OPEC's optimistic outlook OPEC 's outlook remains more optimistic, according to Sachdeva, who referenced the cartel's monthly report released on Tuesday. The report projected that the global economy would perform better in the second half of the year, improving the oil demand outlook. Brazil, China, and India are exceeding expectations, while the U.S. and EU are recovering from last year, the report noted. 'The technicals may offer short-term relief, but fundamentally, the market lacks momentum,' Sachdeva remarked. 'Until clarity emerges on global growth, policy direction, and real demand recovery, especially from Asia, the crude complex looks set to drift sideways.' Oil prices declined on Tuesday following U.S. President Donald Trump's extensive 50-day deadline for Russia to conclude the Ukraine war and avoid sanctions, alleviating immediate supply concerns. Brent crude futures fell by 29 cents, or 0.4 percent, to $68.92 a barrel by 03:42 GMT, while U.S. West Texas Intermediate crude futures decreased by 35 cents, or 0.5 percent, to $66.63. Both contracts had settled more than $1 lower in the preceding session. Initially, oil prices surged due to news of potential sanctions but later relinquished these gains as the 50-day deadline sparked optimism that sanctions might be sidestepped. Traders are now assessing whether the U.S. will indeed impose steep tariffs on nations that continue to trade with Russia. On Monday, Trump announced new weapon supplies for Ukraine and indicated on Saturday that he would impose a 30 percent tariff on most imports from the European Union and Mexico starting August 1, adding to similar warnings directed at other nations. Such tariffs could impede economic growth, potentially dampening global fuel demand and exerting downward pressure on oil prices.
Zawya
4 hours ago
- Business
- Zawya
Oil rises as demand hopes and economic data lift sentiment
Oil prices rose in early trade on Thursday, reversing the previous session's losses, buoyed by stronger-than-expected economic data from the world's top oil consumers and signs of easing trade tensions. Brent crude futures rose 27 cents, or 0.39%, to $68.79 a barrel at 0000 GMT. U.S. West Texas Intermediate crude futures were up 31 cents, or 0.47%, at $66.69. Both benchmarks fell more than 0.2% in the previous session. U.S. crude inventories fell by 3.9 million barrels to 422.2 million barrels last week, the Energy Information Administration said on Wednesday, a steeper decline than forecasts for a 552,000-barrel draw, suggesting stronger refinery activity, tighter supply, and increased demand. There is "some support from the favorable margin environment associated with the refining sector. Product spreads remain relatively wide in all the regions," said John Paisie, president of Stratas Advisors. However, larger-than-expected builds in gasoline and diesel inventories capped price gains. The U.S. central bank's latest snapshot of the economy, released on Wednesday, showed activity picked up in recent weeks. However, the outlook was "neutral to slightly pessimistic" as businesses reported that higher import tariffs were putting upward pressure on prices. China data showed growth slowed in the second quarter, but not by as much as previously feared, in part because of front-loading to beat U.S. tariffs, easing fears over the state of the world's largest crude importer's economy. The data also showed that China's June crude oil throughput was up 8.5% from a year ago, implying stronger fuel demand. Additionally, "support has come from the positive news pertaining to some easing of trade tensions between China and the U.S. with President Trump lifting the ban on the sale of AI chips to China along with the announcement of a trade deal with Indonesia," John Paisie added. U.S. President Donald Trump offered fresh optimism about the prospects of a deal with Beijing on illicit drugs. He also hinted that a trade deal with India is very close, while an agreement could possibly be reached with Europe as well. Trade tariffs could slow down global economic growth, and in turn dampen fuel demand, putting downward pressure on prices. (Reporting by Anjana Anil in Bengaluru; Editing by Sonali Paul)
Yahoo
8 hours ago
- Business
- Yahoo
Oil rises as demand hopes and economic data lift sentiment
By Anjana Anil (Reuters) -Oil prices rose in early trade on Thursday, reversing the previous session's losses, buoyed by stronger-than-expected economic data from the world's top oil consumers and signs of easing trade tensions. Brent crude futures rose 27 cents, or 0.39%, to $68.79 a barrel at 0000 GMT. U.S. West Texas Intermediate crude futures were up 31 cents, or 0.47%, at $66.69. Both benchmarks fell more than 0.2% in the previous session. U.S. crude inventories fell by 3.9 million barrels to 422.2 million barrels last week, the Energy Information Administration said on Wednesday, a steeper decline than forecasts for a 552,000-barrel draw, suggesting stronger refinery activity, tighter supply, and increased demand. [EIA/S] There is "some support from the favorable margin environment associated with the refining sector. Product spreads remain relatively wide in all the regions," said John Paisie, president of Stratas Advisors. However, larger-than-expected builds in gasoline and diesel inventories capped price gains. The U.S. central bank's latest snapshot of the economy, released on Wednesday, showed activity picked up in recent weeks. However, the outlook was "neutral to slightly pessimistic" as businesses reported that higher import tariffs were putting upward pressure on prices. China data showed growth slowed in the second quarter, but not by as much as previously feared, in part because of front-loading to beat U.S. tariffs, easing fears over the state of the world's largest crude importer's economy. The data also showed that China's June crude oil throughput was up 8.5% from a year ago, implying stronger fuel demand. Additionally, "support has come from the positive news pertaining to some easing of trade tensions between China and the U.S. with President Trump lifting the ban on the sale of AI chips to China along with the announcement of a trade deal with Indonesia," John Paisie added. U.S. President Donald Trump offered fresh optimism about the prospects of a deal with Beijing on illicit drugs. He also hinted that a trade deal with India is very close, while an agreement could possibly be reached with Europe as well. Trade tariffs could slow down global economic growth, and in turn dampen fuel demand, putting downward pressure on prices. 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
Reuters
8 hours ago
- Business
- Reuters
Oil rises as demand hopes and economic data lift sentiment
July 17 (Reuters) - Oil prices rose in early trade on Thursday, reversing the previous session's losses, buoyed by stronger-than-expected economic data from the world's top oil consumers and signs of easing trade tensions. Brent crude futures rose 27 cents, or 0.39%, to $68.79 a barrel at 0000 GMT. U.S. West Texas Intermediate crude futures were up 31 cents, or 0.47%, at $66.69. Both benchmarks fell more than 0.2% in the previous session. U.S. crude inventories fell by 3.9 million barrels to 422.2 million barrels last week, the Energy Information Administration said on Wednesday, a steeper decline than forecasts for a 552,000-barrel draw, suggesting stronger refinery activity, tighter supply, and increased demand. There is "some support from the favorable margin environment associated with the refining sector. Product spreads remain relatively wide in all the regions," said John Paisie, president of Stratas Advisors. However, larger-than-expected builds in gasoline and diesel inventories capped price gains. The U.S. central bank's latest snapshot of the economy, released on Wednesday, showed activity picked up in recent weeks. However, the outlook was "neutral to slightly pessimistic" as businesses reported that higher import tariffs were putting upward pressure on prices. China data showed growth slowed in the second quarter, but not by as much as previously feared, in part because of front-loading to beat U.S. tariffs, easing fears over the state of the world's largest crude importer's economy. The data also showed that China's June crude oil throughput was up 8.5% from a year ago, implying stronger fuel demand. Additionally, "support has come from the positive news pertaining to some easing of trade tensions between China and the U.S. with President Trump lifting the ban on the sale of AI chips to China along with the announcement of a trade deal with Indonesia," John Paisie added. U.S. President Donald Trump offered fresh optimism about the prospects of a deal with Beijing on illicit drugs. He also hinted that a trade deal with India is very close, while an agreement could possibly be reached with Europe as well. Trade tariffs could slow down global economic growth, and in turn dampen fuel demand, putting downward pressure on prices.
Yahoo
8 hours ago
- Business
- Yahoo
Oil rises as demand hopes and economic data lift sentiment
By Anjana Anil (Reuters) -Oil prices rose in early trade on Thursday, reversing the previous session's losses, buoyed by stronger-than-expected economic data from the world's top oil consumers and signs of easing trade tensions. Brent crude futures rose 27 cents, or 0.39%, to $68.79 a barrel at 0000 GMT. U.S. West Texas Intermediate crude futures were up 31 cents, or 0.47%, at $66.69. Both benchmarks fell more than 0.2% in the previous session. U.S. crude inventories fell by 3.9 million barrels to 422.2 million barrels last week, the Energy Information Administration said on Wednesday, a steeper decline than forecasts for a 552,000-barrel draw, suggesting stronger refinery activity, tighter supply, and increased demand. [EIA/S] There is "some support from the favorable margin environment associated with the refining sector. Product spreads remain relatively wide in all the regions," said John Paisie, president of Stratas Advisors. However, larger-than-expected builds in gasoline and diesel inventories capped price gains. The U.S. central bank's latest snapshot of the economy, released on Wednesday, showed activity picked up in recent weeks. However, the outlook was "neutral to slightly pessimistic" as businesses reported that higher import tariffs were putting upward pressure on prices. China data showed growth slowed in the second quarter, but not by as much as previously feared, in part because of front-loading to beat U.S. tariffs, easing fears over the state of the world's largest crude importer's economy. The data also showed that China's June crude oil throughput was up 8.5% from a year ago, implying stronger fuel demand. Additionally, "support has come from the positive news pertaining to some easing of trade tensions between China and the U.S. with President Trump lifting the ban on the sale of AI chips to China along with the announcement of a trade deal with Indonesia," John Paisie added. U.S. President Donald Trump offered fresh optimism about the prospects of a deal with Beijing on illicit drugs. He also hinted that a trade deal with India is very close, while an agreement could possibly be reached with Europe as well. Trade tariffs could slow down global economic growth, and in turn dampen fuel demand, putting downward pressure on prices. 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
