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The National
2 days ago
- Business
- The National
Oil heading for weekly gain amid optimism over US-China tariff talks
Oil prices were up on Friday and were heading for their first weekly gain in three weeks amid hopes for a US-China deal on tariffs. Brent, the benchmark for two thirds of the world's oil, was up 0.11 per cent at $65.41 a barrel at 2.49pm UAE time. West Texas Intermediate, the gauge that tracks US crude, added 0.05 per cent to $63.40 per barrel. Both Brent and WTI, which reversed earlier losses on Friday, are on pace for a 4.2 per cent weekly gain. For the year, they are down about 12 per cent. Crude futures posted modest gains on Thursday, but the market became more optimistic after a phone call between US President Donald Trump and China's Xi Jinping, who agreed to resume negotiations on trade and tariffs. The US and China are the two main protagonists in the global trade war, imposing tit-for-tat levies on each other's imports. However, they agreed to a detente on May 12, with Washington lowering its 145 per cent tariffs on Chinese imports to 30 per cent, while Beijing dialled down its own levies from 125 per cent to 10 per cent. The call between the two leaders, a sign of progress in their countries' negotiations, 'prompt[ed] relief after a recent escalation in tensions', analysts at Vanda Insights said. Crude prices took a hit after Mr Trump's sweeping global tariffs announced on April 2 disrupted stock markets and reignited fears of a global recession. However, with many of the tariffs temporarily paused and the US seeking deals with its partners, the uncertainty has reduced. A positive sign for oil prices is the decline in US oil inventories, indicating demand for the commodity remains strong. At the moment, market fundamentals seem to remain balanced, especially after Opec+ last month agreed to increase its monthly oil output at 411,000 barrels per day for July, the same as in May and June, analysts at Fitch unit BMI said. The decision was 'in view of a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories', the group said. Opec+ noted that gradual increases may be paused or reversed 'subject to evolving market conditions' and 'flexibility will allow the group to continue to support oil market stability'. Analysts say the move by Opec+ may be a gesture to mollify Mr Trump, who has called for lower crude prices. BMI analysts, however, cautioned that any slower economic growth later in 2025 'will see markets tip into oversupply'. They also expect a similar production rise for August, 'should market conditions and prices remain steady'. 'But both weaker demand for oil and increased production from both Opec+ and non-Opec producers will add to downside price pressures in the coming quarters,' BMI said. Upstream oil investments are projected to be under $570 billion in 2025, which would be a 6 per cent decline, marking the first annual drop since the Covid-induced slide in 2020 and the largest since 2016, the International Energy Agency said on Thursday. The decrease is being attributed to lower oil prices and demand expectations, amid economic uncertainties, the Paris-based IEA said.
The National
16-05-2025
- Business
- The National
Oil on track for second weekly gain as US-China trade tension thaws
Oli prices were up on Friday after losses were recouped from the previous day and are on track for a second consecutive weekly gain, buoyed by hopes of trade tension between the US and China continuing to thaw. Brent, the benchmark for two thirds of the world's crude, was up 0.46 per cent to $64.83 a barrel at 3.04pm UAE time. West Texas Intermediate, the gauge that tracks US crude, added 0.44 per cent to $61.89 per barrel. Crude fell by more than 3 per cent on Thursday on the back of expectations of a possible nuclear deal between the US and Iran that could result in Tehran boosting oil supply to the market if sanctions are eased. Brent and WTI are on track to post a 1 per cent weekly gain. Year-to-date, the benchmarks are down by about 14 per cent, weighed down particularly by the sweeping tariffs announced by the US last month. The market has been "awaiting news on a potential US-Iran nuclear deal and developments on US tariff negotiations with trading partners around the world, with a particular focus on the talks with China that began this week", analysts at Vanda Insights said. The US and China, the two main protagonists in the tariff war, agreed to a 90-day trade truce after a much-anticipated meeting in Geneva last weekend. The world's two biggest economies and users of crude imposed significant drops to the tariffs they had imposed on each other for a period of 90 days, "recognising the importance of their bilateral economic and trade relationship to both countries and the global economy", a joint statement released by the White House read. Oil prices, however, continue to be weighed down by the possibility of Opec+ increasing its output and a nuclear deal between the US and Iran. US President Donald Trump, who wrapped up his Middle East tour in Abu Dhabi, had earlier said Washington was close to reaching a deal with Tehran. Iran is Opec's third-largest oil producer, with an output of 3.3 million barrels per day as of April, according to the latest monthly oil market report by the oil producers' group. If a deal is reached between the two countries, it could lead to a boost in supply from Iran, based on the prospect of sanctions relief. Meanwhile, Opec plans to boost output in anticipation of higher demand are also weighing on oil prices. The alliance of producers, including Saudi Arabia and Russia, this month agreed to increase production by 411,000 barrels per day for a second month in a row in June after deciding to add the same volume to the market in May. On Thursday, the International Energy Agency boosted its global supply growth forecast for 2025 by 380,000 bpd, while anticipating a surplus for 2026. Investors are awaiting clues from the US Federal Reserve on potential interest rate cuts, which are expected to boost the American economy, its consumers and energy demand.
CNBC
09-05-2025
- Business
- CNBC
Oil set for weekly gain ahead of U.S.-China trade talks
Oil prices rose on Friday, poised for a weekly gain as trade tensions between top oil consumers China and the United States showed signs of easing and Britain announced a "breakthrough" U.S. trade deal. Brent crude firmed by 53 cents, or 0.84%, to $63.37 a barrel. U.S. West Texas Intermediate crude was up 51 cents, or 0.85%, at $60.42. On the week, both contracts were up more than 3%. Hopes that the trade war between the U.S. and China is cooling had helped Brent futures to jump by 3% on Thursday, said PVM analyst John Evans. U.S. Treasury Secretary Scott Bessent will meet China's top economic official Vice Premier He Lifeng in Switzerland on May 10 to work towards resolving trade disputes that have threatened oil demand. "If the two set a date to start formal trade negotiations and agree to ratchet down their current steep tariffs against each other while talks carry on, markets will get a breather and crude could stack on another $2 to $3 per barrel," said Vandana Hari, founder of oil market analysis provider Vanda Insights. Chinese exports rose faster than expected in April while imports narrowed their decline, customs data showed on Friday, giving Beijing some relief ahead of tariff talks. The country's crude oil imports in April dipped from the previous month but were up 7.5% year on year, buoyed by stockpiling by state refiners during maintenance outages. Separately, U.S. President Donald Trump and British Prime Minister Keir Starmer announced that Britain had agreed to lower tariffs on U.S. imports. Elsewhere, the Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, plan to increase output, maintaining pressure on oil prices. A Reuters survey found that OPEC oil output edged lower in April as production declines in Libya, Venezuela and Iraq outweighed a scheduled increase in output. Meanwhile, tighter U.S. sanctions on Iran could restrict supply and push prices higher. The U.S. this week imposed sanctions on a third small Chinese refinery for buying Iranian oil.
RTÉ News
09-05-2025
- Business
- RTÉ News
Oil set for weekly gain ahead of US-China trade talks
Oil prices rose today, poised for a weekly gain as trade tensions between top oil consumers China and the US showed signs of easing and Britain announced a "breakthrough" US trade deal. Brent crude firmed by 83 cents, or 1.3%, to $63.27 a barrel this morning, while US West Texas Intermediate crude was up 85 cents, or 1.4%, at $60.76. On the week, both contracts were up about 4%. Hopes that the trade war between the US and China is cooling had helped Brent futures to jump by 3% yesterday, said PVM analyst John Evans. US Treasury Secretary Scott Bessent will meet China's top economic official Vice Premier He Lifeng in Switzerland on May 10 to work towards resolving trade disputes that have threatened oil demand. "If the two set a date to start formal trade negotiations and agree to ratchet down their current steep tariffs against each other while talks carry on, markets will get a breather and crude could stack on another $2 to $3 per barrel," said Vandana Hari, founder of oil market analysis provider Vanda Insights. Chinese exports rose faster than expected in April while imports narrowed their decline, customs data showed today, giving Beijing some relief ahead of tariff talks. The country's crude oil imports in April dipped from the previous month but were up 7.5% year on year, buoyed by stockpiling by state refiners during maintenance outages. Separately, US President Donald Trump and British Prime Minister Keir Starmer announced that Britain had agreed to lower tariffs on US imports. Elsewhere, the Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, plan to increase output, maintaining pressure on oil prices. A Reuters survey found that OPEC oil output edged lower in April as production declines in Libya, Venezuela and Iraq outweighed a scheduled increase in output. Meanwhile, tighter US sanctions on Iran could restrict supply and push prices higher. The US this week imposed sanctions on a third small Chinese refinery for buying Iranian oil.
Zawya
09-05-2025
- Business
- Zawya
Oil set for weekly gain ahead of US-China trade talks
Oil prices rose more than 1% on Friday, poised for a weekly gain as trade tensions between top oil consumers China and the United States showed signs of easing and Britain announced its own U.S. trade deal. Brent crude firmed by $1.19, or about 1.9%, to $64.03 a barrel by 1021 GMT. U.S. West Texas Intermediate crude was up $1.21, or about 2%, at $61.12. On the week, both contracts were on track to rise more than 4%. Hopes that the trade war between the U.S. and China is cooling had helped Brent futures to jump by 3% on Thursday, said PVM analyst John Evans. U.S. Treasury Secretary Scott Bessent will meet China's top economic official Vice Premier He Lifeng in Switzerland on May 10 to work towards resolving trade disputes that have threatened oil demand. "If the two set a date to start formal trade negotiations and agree to ratchet down their current steep tariffs against each other while talks carry on, markets will get a breather and crude could stack on another $2 to $3 per barrel," said Vandana Hari, founder of oil market analysis provider Vanda Insights. Meanwhile Chinese exports rose faster than expected in April while imports narrowed their decline, customs data showed on Friday, giving Beijing some relief ahead of tariff talks. The country's crude oil imports in April dipped from the previous month but were up 7.5% year on year, buoyed by stockpiling by state refiners during maintenance outages. Elsewhere, the Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, plan to increase output, maintaining pressure on oil prices. Separately, U.S. President Donald Trump and British Prime Minister Keir Starmer announced that Britain had agreed to lower tariffs on U.S. imports. A Reuters survey found that OPEC oil output edged lower in April as production declines in Libya, Venezuela and Iraq outweighed a scheduled increase in output. (Reporting by Enes Tunagur in London, Mohi Narayan in New Delhi and Sudarshan Varadhan in Singapore, additional reporting by Seher Dareen in London Editing by David Goodman)
