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Business Recorder
24-05-2025
- Business
- Business Recorder
Oil rebounds on short-covering, nuclear talks
HOUSTON: Oil prices rebounded on Friday as US buyers were filling inventories ahead of the three-day Memorial Day weekend amid worries over the latest round of nuclear talks between American and Iranian negotiators. Brent crude futures rose 54 cents, or 0.84%, to $64.98 a barrel by 1600 GMT. US West Texas Intermediate crude futures were up 39 cents, or 0.64%, at $61.59. In earlier trading futures had dropped by 1% as they headed to the first weekly decline in three weeks after US President Donald Trump on Friday recommended a 50% tariff on the European Union and expectations rose that OPEC+ will increase crude output further in July. 'I think there is some short-covering going into this weekend,' said Phil Flynn, senior analyst with Price Futures Group. The Memorial Day weekend kicks off the US summer driving season, the period of highest demand for motor fuels. US and Iranian negotiators met in Rome on Friday in another round of talks aimed at curtailing the Islamic Republic's nuclear program. Traders are afraid crude supplies could be interrupted if talks fail to reach a deal, Flynn said. 'The talks are not looking good,' he said. 'If these are the last talks and there's no deal, it could give a green light to the Israelis to attack Iran.' resident Trump said on Friday that he is recommending a straight 50% tariff on goods from the EU starting on June 1, saying the bloc has been hard to deal with on trade. 'The tariff threats versus the European Union, an important trading partner of the US, supports renewed economic slowdown concerns,' said UBS analyst Giovanni Staunovo. Meanwhile, the OPEC+ group comprising the Organization of the Petroleum Exporting Countries and allies led by Russia is holding meetings next week expected to yield another output increase of 411,000 barrels per day (bpd) for July.
Business Times
23-05-2025
- Business
- Business Times
Oil gains on short-covering, nuclear talks
[HOUSTON] Oil prices gained on Friday (May 23) as US buyers covered positions ahead of the three-day Memorial Day weekend amid worries over the latest round of nuclear talks between American and Iranian negotiators. Brent crude futures settled at US$64.78 a barrel, up 34 US cents, or 0.54 per cent. US West Texas Intermediate crude futures finished at US$61.53, up 33 US cents, or 0.54 per cent. 'I think there is some short-covering going into this weekend,' said Phil Flynn, senior analyst with Price Futures Group. The Memorial Day weekend kicks off the US summer driving season, the period of highest demand for motor fuels. US and Iranian negotiators met in Rome on Friday in another round of talks aimed at curtailing the Islamic Republic's nuclear programme. Traders are afraid crude supplies could be interrupted if talks fail to reach a deal, Flynn said. 'The talks are not looking good,' he said. 'If these are the last talks and there's no deal, it could give a green light to the Israelis to attack Iran.' President Donald Trump said on Friday that he is recommending a straight 50 per cent tariff on goods from the EU starting on Jun 1, saying the bloc has been hard to deal with on trade. 'The oil market has been under pressure from two things,' said Andrew Lipow, president of Lipow Oil Associates. 'We await the impact of tariffs on oil demand and Opec+ is expected to increase supply again this summer.' Opec+, comprising the Organization of the Petroleum Exporting Countries and allies led by Russia is holding meetings next week expected to yield another output increase of 411,000 barrels per day (bpd) for July. Reuters reported this month that the group could unwind the rest of its 2.2 million bpd voluntary production cut by the end of October, having already raised output targets by about one million bpd for April, May and June. REUTERS
Business Recorder
18-05-2025
- Business
- Business Recorder
Chicago wheat stumbles on improved harvest prospects
CHICAGO: Chicago wheat futures moved lower on Friday as traders weighed improved yield prospects in the US Plains, though brisk export demand limited losses, traders said. Soybean prices steadied after tumbling on Thursday, while corn sank on ideal planting and growing conditions in the US Midwest. CBOT soybeans were down 1 cent to $10.50-1/4 per bushel as of 11:20 a.m. CT (1620 GMT). Soybeans had reached their highest price since late July on Wednesday, buoyed by this week's de-escalation in the US-China tariff stand-off, before dropping 2.5% on Thursday. CBOT corn fell 2-1/4 cents to $4.46-1/4 a bushel, and CBOT wheat edged down 8-3/4 cents to $5.24 a bushel. Soyoil futures consolidated on Friday after plunging to their daily limit in the previous session as uncertainty over a US biodiesel mandate hung over the market. The biofuel sector is still awaiting clarification after the US Environmental Protection Agency (EPA) said on Thursday it had sent its proposal on future biofuel blending mandates to the White House for review. Meanwhile, beneficial planting and growing conditions for the corn and soy crop in the US Midwest have also put more pressure on futures. Favourable US wheat harvest prospects have outweighed bullishness from increased export demand and threats to China's wheat crop, traders said. 'When you look at improved growing conditions, it's hard to justify a major rally in wheat,' Jack Scoville, vice president of Price Futures Group, said. A crop tour in Kansas, the top US wheat-growing state, projected the highest yield in four years as the region's crop was boosted by timely rain. US export sales of wheat for the week ended May 8 totalled 804,800 metric tons, beating analyst expectations, according to the US Department of Agriculture. China issued a warning on Friday of a high risk of dry, hot winds next week that could damage winter wheat crops in major producing areas, including Henan.
Wall Street Journal
02-05-2025
- Business
- Wall Street Journal
U.S. Natural Gas Futures Add to Gains
0957 ET – U.S. natural gas futures are higher for a second session after a weekly storage build, while large, came in at the low end of market expectations to put stocks 0.2% above the five-year average. 'Supply is tighter than usual this time of year,' Phil Flynn of the Price Futures Group says in a note. At this time last year, storage was around 35% above the five-year average. 'Rising electricity demand and LNG exports are expected to support the market through summer,' Flynn adds. Nymex natural gas is up 1.5% at $3.531/mmBtu. (
Business Times
30-04-2025
- Business
- Business Times
Oil settles lower, posts steepest monthly decline since 2021
[NEW YORK] Oil prices settled down on Wednesday (Apr 30) and recorded the largest monthly drop in almost 3½ years after Saudi Arabia signalled a move towards producing more and expanding its market share, while the global trade war eroded the outlook for fuel demand. Brent crude futures settled US$1.13, or 1.76 per cent, lower at US$63.12 a barrel. US West Texas Intermediate (WTI) crude futures dropped US$2.21, or 3.66 per cent, to close at US$58.21, the lowest settlement since March 2021. For the month, Brent settled down 15 per cent and WTI was down 18 per cent, the biggest monthly percentage declines since November 2021. Both benchmarks slumped after Saudi Arabia, one of the world's biggest oil producers, signalled it was unwilling to prop up the oil market with further supply cuts and could handle a prolonged period of low prices. 'It raises concern that we could be headed towards another production war,' said Phil Flynn, senior analyst with Price Futures Group. 'Are the Saudis trying to send a message that they are going to get back their market share? We will have to wait and see.' Earlier this month, Saudi Arabia pushed for a larger-than-planned Opec+ output hike in May. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Several Opec+ members will suggest a ramp-up of output increases for a second straight month in June, sources told Reuters last week. The group will meet on May 5 to discuss output plans. 'The trade war directly reduces oil demand and hinders travel by consumers. Combined with Opec's unwinding of output cuts, the risk of oversupply is escalating,' said Raymond James investment strategy analyst Pavel Molchanov. US President Donald Trump announced tariffs on all US imports on Apr 2 and China responded with its own levies, stoking a trade war between the world's top two oil-consuming nations. Concerns over the global economy weakening continued to pressure oil prices. Data on Wednesday showed the US economy contracted in the first quarter, weighed down by a deluge of goods imported by businesses eager to avoid higher costs. Trump's tariffs have made it probable the global economy will slip into recession this year, a Reuters poll suggested. US consumer confidence, meanwhile, slumped to its lowest in nearly five years in April on growing concerns over tariffs, data showed on Tuesday. US crude oil stockpiles fell unexpectedly last week on higher export and refinery demand, limiting some price losses. Crude inventories fell by 2.7 million barrels to 440.4 million barrels in the week ended Apr 25, the Energy Information Administration said on Wednesday, compared with analysts' expectations in a Reuters poll for a 429,000-barrel rise. REUTERS
