Oil Prices Fall as OPEC+ Output Hikes Counter Russia Disruption Concerns
(REUTERS)- Oil prices slipped on Tuesday as rising OPEC+ supply and worries...
(REUTERS)- Oil prices slipped on Tuesday as rising OPEC+ supply and worries of weaker global demand countered concern about U.S. President Donald Trump's threats to India over its Russian oil purchases.
Brent crude futures settled down $1.12, or 1.63%, to $67.64 a barrel, while U.S. West Texas Intermediate crude slipped $1.13, or 1.7%, to $65.16.Both benchmarks settled to their lowest in five weeks.
The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, agreed on Sunday to raise oil production by 547,000 barrels per day for September, a move that will end its most recent output cut earlier than planned.
"The significant increase in OPEC supplies is weighing on the market," said Andrew Lipow, president of Lipow Oil Associates.
Also weighing on prices, U.S. services sector activity unexpectedly flatlined in July with little change in orders and a further weakening in employment even as input costs climbed by the most in nearly three years, underscoring the ongoing drag of uncertainty over the Trump administration's tariff policy on businesses.
"The market now is going to see if India and China agree to substantially reduce the purchases of Russian crude oil, thereby looking for alternative supplies elsewhere," Lipow said.
Malaysia's Petronas will purchase $3.4 billion in US liquefied natural...
Malaysia's Petronas will purchase $3.4 billion in US liquefied natural gas annually as part of a trade agreement that sets a 19% US tariff and includes up to $150 billion in Malaysian spending on US equipment over the next five years. Officials say the deal is intended to shrink the US trade deficit with Malaysia while deepening cooperation in energy, technology and manufacturing.
The Dow Jones Industrial Average lost 61.90 points, or over 0.1% to end at 44,111.74, according to FactSet data.
The S&P 500 shed 30.75 points, or 0.5% to finish at 6,299.19.
The Nasdaq Composite dropped 137.03 points, or nearly 0.7% to finish at 20,916.55.
A survey of businesses such as retailers, restaurants and package deliverers slipped to 50.1% last month from 50.8% in June, the Institute for Supply Management said Tuesday. A reading above 50 indicates the services sector economy is generally expanding.
The prices-paid index, a measure of inflation, rose 2.4 points to 69.9 and hit a nearly three-year high, while the employment barometer fell slightly to 46.4%, the lowest level in four months.
Crude oil prices rose last week, with Brent crude ending at $69.67...
Crude oil prices rose last week, with Brent crude ending at $69.67 and WTI at $67.33. This increase was attributed to positive developments in U.S. trade negotiations with Japan and the EU, although a disappointing U.S. jobs report limited the gains.
Looking ahead, crude prices are expected to be under pressure as OPEC+ plans to continue increasing production. However, this could be countered by the possibility of new U.S. sanctions on Russian oil. Such sanctions would destabilize the market, potentially prompting OPEC+ to reconsider its production increases and creating an opportunity for U.S. shale oil producers. Despite this, it's unlikely that OPEC+'s output hikes would be enough to fully offset a significant loss of Russian oil supply.
It probably wasn’t as big a shock to BP as it was to Jed Clampett,...
It probably wasn’t as big a shock to BP as it was to Jed Clampett, but the company said yesterday it had made its biggest oil and gas discovery in 25 years while drilling off the coast of Brazil. The find comes as BP turns away from trying to pivot to renewable energy, once again going all in on fossil fuels.
The area, known as the Bumerangue block, is in deep water in the Santos Basin, 404km (218 nautical miles) from Rio de Janeiro. It’s believed to contain gas, condensate, and oil, though BP wasn’t willing to estimate precisely how much yet.
BP said it could be the company’s largest find since the discovery of the giant gas and condensate field Shah Deniz in the Caspian Sea in 1999.
The discovery is BP’s 10th this year as the company searches for more oil and gas to try to convince investors that it can deliver returns from traditional black gold. The company reports its quarterly results today.
