World News
Oil Extends Gains As Trump Trade Successes Slowly Acknowledged
The Trump effect continued to bode well for oil on Tuesday, with gains extended due to the growing realization that U.S. president Donald Trump’s so-called ‘trade war’ with other countries was in fact leading to mutually beneficial trade deals, the latest being with the European Union.
Analytical optimism was expressed as U.S. and China officials gathered in Stockholm for trade talks.
As of 1600 GMT, Brent rose 95 cents at $70.99 per barrel, while West Texas Intermediate climbed 99 cents to $67.70.
Trading was also said to be buoyed by Trump shortening the deadline for Russia to end its conflict with Ukraine from 50 days to 10, and this caused Daniel Hynes, senior commodity strategist at ANZ, to state, "This comes also on the backs of the latest EU sanctions package against Russia; this includes a lower cap on the price of Russia's crude oil and the importation of refined products that are made from Moscow's oil in other countries."
Dennis Kissler, senior vice president for trading at BOK Financial Securities, added, “The new deadline caught many analysts by surprise and, if enforced, could tighten Russian crude and fuel supplies to the global market.”
Bloomberg said of the state of the oil market overall, “Oil is heading for a third monthly gain on signs of tight stockpiles in some regions and robust demand during the Northern Hemisphere summer, the peak season for consumption.”
However, the news agency noted, “Still, the market is on track for a glut toward the end of the year as OPEC and its allies continue boosting supplies.”
In other oil news on Tuesday as expectations grow for a trade deal between Washington and Beijing, data from Kpler revealed that China is poised to export 859,000 barrels per day (bpd) of gasoline, diesel, and other light and middle distillates, up from 796,000 bpd in June.
The volumes are set to be the highest since March 2024 and have benefitted from an increase of refining margins in recent months.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 521.50 | 6.00 | 690.00 | 4.00 |
| Rotterdam | 508.00 | 1.50 | 709.00 | 3.50 |
| Houston | 506.50 | 5.00 | 705.50 | 8.50 |
| Fujairah | 514.00 | 5.50 | 744.00 | 1.50 |
| Global 20 Ports Average | 550.00 | 3.00 | 770.50 | 1.50 |
| Global 4 Ports Average | 512.50 | 4.50 | 712.00 | 2.50 |
| Global Average Bunker Price | 585.50 | 1.50 | 817.00 | 1.50 |
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