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Observer
3 hours ago
- Business
- Observer
Oil prices rise, global economy stabilises in June
VIENNA: The Organization of the Petroleum Exporting Countries (Opec) announced on Wednesday a significant increase in oil prices in June, with the average Opec basket rising by $6.11 to $69.73 a barrel, in addition to the stability of the global economy in the same month. Opec reported in its monthly report that Brent crude rose by $5.79 to $69.80 and West Texas Intermediate crude rose by $6.39 to $67.33. On the economic front, the report indicated that the global economy continued its stable growth, supported by strong performance in the first half of this year, with growth forecasts remaining stable at 2.9 per cent for 2025 and 3.1 per cent for 2026. The report indicated that forecasts for the world's largest economies remained stable during 2025 and 2026, led by the United States at 1.7 per cent and 2.1 per cent, China at 4.6 per cent and 4.5 per cent, and India at 6.5 per cent. In addition, forecasts for Japan, the Euro zone, Brazil and Russia remained stable. Global oil demand remained unchanged, with an expected growth of 1.3 million barrels per day for 2025 and 2026, an increase of 100,000 barrels per day from OECD countries and 1.2 million barrels per day from non-OECD countries. Regarding supplies, Opec expects oil production from countries not participating in the Declaration of Cooperation to grow by 800,000 barrels per day in 2025 and 700,000 barrels per day in 2026, led by the United States, Brazil, Canada and Argentina. The report indicated that crude oil production from Opec countries participating in the agreement recorded a monthly increase of 349,000 barrels per day in June, reaching approximately 41.56 million barrels per day. The Opec report also addressed Europe's imports of crude oil and products, indicating an 11 per cent increase. Japan's imports of crude oil declined, although they remained higher than the previous year's levels, and its product exports declined. The report indicated that commercial oil inventories in OECD countries rose by 34.5 million barrels in May to 2,771 million barrels, but they remain approximately 184 million barrels below the 2015-2019 average, with both crude oil and product inventories rising. — ONA
Business Recorder
5 hours ago
- Business
- Business Recorder
Oil eases 1% as US fuel stock builds put focus on demand
HOUSTON: Oil prices fell about 1% on Wednesday as U.S. fuel inventory builds reinforced views in the market of shrinking demand as the wider economic impact from U.S. tariffs could curb consumption. Brent crude futures fell 71 cents, or 1%, to $68 a barrel by 10:50 a.m. ET (1450 GMT). U.S. West Texas Intermediate crude futures were down 69 cents, or 1%, at $65.82. U.S. crude stocks fell while gasoline and distillate inventories rose last week, the Energy Information Administration said on Wednesday. Crude inventories fell by 3.9 million barrels to 422.2 million barrels in the week ended July 11, the EIA said, compared with analysts' expectations in a Reuters poll for a 552,000-barrel draw. Oil eases as Trump's 50-day deadline for Russia reduces supply fears U.S. gasoline stocks rose by 3.4 million barrels, compared with analysts' expectations in a Reuters poll for a 1 million-barrel draw.? Distillate stockpiles, which include diesel and heating oil, rose by 4.2 million barrels versus expectations for a 200,000-barrel rise, the EIA data showed. 'I think the market is disappointed to see large builds in gasoline and distillate inventories as refiners are operating at near their highest levels of the year turning oil into refined products,' said Andrew Lipow, president of Lipow Oil Associates. 'I think investors are also disappointed to see gasoline demand fall just after July 4 as we are now in the peak summer driving season,' he added. The amount of products supplied for gasoline, a proxy for demand, eased 670,000 barrels per day to 8.5 million bpd. Meanwhile, U.S. President Donald Trump's tariff war continues, with the European Commission preparing possible retaliation if talks with Washington fail to secure a trade agreement for the European Union. Trump also said on Monday that the United States will impose 'very severe tariffs' on Russia in 50 days if there is no deal to stop the war in Ukraine. Analysts said selling linked to concerns about economic disruption and weaker demand was offset by anticipation China, the world's biggest crude importer, will need more oil. Chinese state-owned refiners are completing maintenance to meet higher third-quarter fuel demand and to rebuild diesel and gasoline stocks at multi-year lows, traders and analysts said. Barclays estimated that Chinese oil demand in the first half of the year grew by 400,000 barrels per day year-on-year to 17.2 million bpd. Meanwhile, OPEC's monthly report on Tuesday forecast that the global economy would do better in the second half of the year. Brazil, China and India are exceeding expectations while the United States and EU are recovering from last year, it added.
Business Recorder
8 hours ago
- Business
- Business Recorder
Oil prices slip as investors weigh trade war impact
LONDON: Oil prices fell by about 1% on Wednesday, as signs of stronger Chinese crude consumption were outweighed by investor caution about the wider economic impact from U.S. tariffs. Prices have seesawed in a tight range, as signs of steady demand from an increase in travel during the Northern Hemisphere summer have competed with concerns that U.S. tariffs on trading partners will slow economic growth and fuel consumption. Brent crude futures fell 63 cents, or 0.9%, to $68.08 a barrel by 1150 GMT. U.S. West Texas Intermediate crude futures were down 69 cents, or 1%, to $65.83. U.S. President Donald Trump has threatened a 30% tariff on imports from the European Union from August 1, a level European officials say is unacceptable and would end normal trade between two of the world's largest markets. Oil eases as Trump's 50-day deadline for Russia reduces supply fears The European Commission is preparing to target 72 billion euros ($84.1 billion) worth of U.S. goods for possible tariffs if talks with Washington to reach a trade agreement fail. Trump also said on Monday that the United States will impose 'very severe tariffs' on Russia in 50 days if there is no deal to stop the war in Ukraine. 'The latest U.S. salvo towards Russia failed to reignite fears of sustained supply disruption, and as a result, oil continued to drift lower yesterday,' PVM oil analyst Tamas Varga said in a note. An improved demand outlook from China limited losses, however. Chinese state-owned refiners are ramping up production after completing maintenance to meet higher third-quarter fuel demand and to rebuild diesel and gasoline stocks which are at multi-year lows, traders and analysts said. 'A potential peak in Chinese oil demand often comes up in conversations, but we think the concerns are likely overdone, as a closer look suggests demand is resilient,' Barclays said in a note on Wednesday. The bank estimates that Chinese oil demand grew by 400,000 barrels per day (bpd) year-on-year in the first half of the year to 17.2 million bpd. Meanwhile, OPEC's monthly report on Tuesday forecast that the global economy would do better in the second half of the year, boosting the oil demand outlook. Brazil, China and India are exceeding expectations while the U.S. and EU are recovering from last year, it added. U.S. crude, distillate and gasoline stocks rose last week, market sources said, citing American Petroleum Institute figures on Tuesday. Crude stocks rose by 839,000 barrels in the week ended July 11, the sources said. Gasoline inventories rose by 1.93 million barrels and distillate stocks rose by 828,000 barrels, they added.
Business Recorder
11 hours ago
- Business
- Business Recorder
Oil prices steady as investors weigh trade war impact
LONDON: Oil prices steadied on Wednesday, as signs of stronger Chinese crude consumption were outweighed by investor caution about the wider economic impact from U.S. tariffs. Prices have seesawed in a tight range, as signs of steady demand from an increase in travel during the Northern Hemisphere summer have competed with concerns that U.S. tariffs on trading partners will slow economic growth and fuel consumption. Brent crude futures eased 17 cents, or 0.3%, to $68.54 a barrel by 0844 GMT. U.S. West Texas Intermediate crude futures were down 11 cents, or 0.2%, to $66.41. U.S. President Donald Trump has threatened a 30% tariff on imports from the European Union from August 1, a level European officials say is unacceptable and would end normal trade between two of the world's largest markets. The European Commission is preparing to target 72 billion euros ($84.1 billion) worth of U.S. goods for possible tariffs if talks with Washington to reach a trade agreement fail. Trump on Monday also said that the United States will impose 'very severe tariffs' on Russia in 50 days if there is no deal to stop the war in Ukraine. 'The latest U.S. salvo towards Russia failed to reignite fears of sustained supply disruption, and as a result, oilcontinued to drift lower yesterday,' PVM oil analyst Tamas Varga said in a note. An improved demand outlook from China limited losses, however. Chinese state-owned refiners are ramping up production after completing maintenance to meet higher third-quarter fuel demand and to rebuild diesel and gasoline stocks which are at multi-year lows, traders and analysts said. Meanwhile, OPEC's monthly report on Tuesday forecast that the global economy would do better in the second half of the year, boosting the oil demand outlook. Brazil, China and India are exceeding expectations while the U.S. and EU are recovering from last year, it added. U.S. crude, distillate and gasoline stocks rose last week, market sources said, citing American Petroleum Institute figures on Tuesday. Crude stocks rose by 839,000 barrels in the week ended July 11, the sources said. Gasoline inventories rose by 1.93 million barrels and distillate stocks rose by 828,000 barrels, they added.
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Business Standard
12 hours ago
- Business
- Business Standard
Oil prices gain on summer demand expectations despite wider economy woes
Oil prices rose on Wednesday, boosted by expectations of firm summer demand in the world's two largest consumers, the United States and China, though gains were capped by analysts' caution about the wider economy. Prices have seesawed in a tight range as signs of steady demand from an increase in travel during the Northern Hemisphere summer have competed with concerns that U.S. tariffs on trading partners will slow economic growth and fuel consumption. Brent crude futures rose 36 cents, or 0.5 per cent, to $69.07 a barrel by 0646 GMT. U.S. West Texas Intermediate crude futures were up 47 cents, or 0.9 per cent, to $66.99. That reversed two days of declines as the market downplayed the potential for supply disruptions after U.S. President Donald Trump threatened tariffs on purchases of Russian oil. Major oil producers are pointing to signs of better economic growth in the second half of the year while data from China showed consistent growth. "Strong seasonal demand is currently providing upward momentum to oil prices, as summer travel and industrial activity peak," LSEG analysts said in a note. "Increased gasoline consumption, especially in the U.S. during the Fourth of July holiday period, has signalled robust fuel demand, helping offset bearish pressures from rising inventories and tariff concerns." China data showed growth slowed in the second quarter, but less than feared, in part because of frontloading to beat U.S. tariffs. That eased some concerns about the economy of the world's largest importer of crude. The data also showed that China's crude oil throughput in June jumped 8.5 per cent from a year earlier, indicating stronger fuel demand. However, some analysts saw the price rebound as temporary. Much of the steadying of crude markets after two volatile sessions resulted from a mild technical correction rather than any significant shift in underlying fundamentals, said Phillip Nova's senior market analyst Priyanka Sachdeva. "Investors should monitor inflation and interest rate expectations in the United States as Trump's continued push for broader tariffs could be inflationary and could dampen fuel demand in the medium term," she said. OPEC's narrative remained more optimistic, Sachdeva said, pointing to the grouping's monthly report on Tuesday that forecast that the global economy would do better in the year's second half, boosting the oil demand outlook. Brazil, China and India are exceeding expectations while the US and EU are recovering from last year, it added. "The technicals may offer short-term relief, but fundamentally, the market lacks momentum," Sachdeva said. "Until clarity emerges on global growth, policy direction, and real demand recovery, especially from Asia, the crude complex looks set to drift sideways."
