PT Solid Gold Berjangka | Oil Prices Fall On U.S. Tariff Uncertainty Ahead Of Expected OPEC+ Output Increase
OIL SOLID GOLD BERJANGKA, SG BERJANGKA , SOLID GROUP, PT SGB , SGB
Solid Gold Berjangka | Oil prices fell slightly on Thursday as investors worried that U.S. tariffs could slow energy demand ahead of expected supply increases by major crude producers.
Brent crude futures settled 31 cents, or 0.45%, lower at $68.80 a barrel. U.S. West Texas Intermediate crude fell 45 cents, or 0.67%, to $67 in thin trading ahead of the Independence Day holiday.
President Donald Trump’s 90-day pause on higher U.S. tariffs expired on July 9, and several major trading partners have yet to reach a trade deal, including the European Union and Japan. Oil traders are concerned about the impact on the economy and fuel demand.
A preliminary trade deal between the U.S. and Vietnam boosted prices on Wednesday, but overall tariff uncertainty looms large. Also weighing on prices, OPEC+ is expected to agree to raise output by 411,000 barrels per day at its policy meeting later this week.
Also, a private sector survey showed services activity in China – the world’s biggest oil importer – expanded in June at the slowest pace in nine months as demand weakened and new export orders fell.
In the U.S., a surprise build in crude inventories also highlighted demand concerns in the world’s biggest crude consumer.
The U.S. Energy Information Administration said on Wednesday that domestic crude inventories rose by 3.8 million barrels to 419 million barrels last week. Analysts in a Reuters poll had forecast a draw of 1.8 million barrels.
U.S. energy firms this week cut the oil rig count by seven to 425, the lowest since September 2021, energy services firm Baker Hughes (BKR.O), opens new tab said in a closely followed report on Thursday. The oil rig count is an indicator of future production.
U.S. job growth was solid in June while the unemployment rate fell unexpectedly, data showed on Thursday. However, nearly half of the increase in nonfarm payrolls came from the government sector, with private sector gains slowing significantly as industries such as manufacturing and retail grapple with Trump’s aggressive tariffs on imports.
“Thursday’s jobs report was stronger than expected, suggesting that the resilience we’ve seen in the economy over the last few months is still intact. We still expect the Federal Reserve to continue its wait-and-see approach on interest rates,” said David Laut, chief investment officer at Abound Financial.
Both contracts hit one-week highs on Wednesday as Iran’s oil producers suspended cooperation with the U.N. nuclear watchdog, raising concerns that a lingering dispute over its nuclear program could escalate into armed conflict.
Washington imposed new sanctions on Iran on Thursday as well as sanctions targeting Hezbollah’s network, the U.S. Treasury Department website shows. “For now, the market will take it for granted, as neither of these efforts have worked in the past,” said John Kilduff, a partner at Again Capital. (alg)
Source: Reuters