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Canadian Prime Minister Mark Carney: Canada will impose identical tariffs on the new U.S. tariffs, without any difference. In addition, we will introduce additional enhanced support measures totaling C$7.5 billion to assist Canadian workers and businesses. This funding will be added to the approximately C$25 billion in support measures already announced since the U.S. imposed its unreasonable tariffs.Qatari Foreign Ministry: Qatar strongly condemns the Israeli Defense Ministers illegal entry into Syrian territory and crossing of international borders.August 26th - On August 25th local time, wildfires continued to expand in rural Texas, prompting local emergency management authorities to order the evacuation of residents. The fires, which began early on the afternoon of the 24th, have already engulfed an area of over 200 square kilometers in north-central Texas. Wildfires have been rampant in the southern and western United States in recent days due to persistently dry weather. The National Interagency Fire Center reported that over a dozen new fires were reported on the 23rd alone. The center stated that more than 50,000 wildfires have occurred nationwide this year, the highest number for the same period in the past decade.The Federal Reserve accepted a total of $405 million from six counterparties in its fixed-rate reverse repurchase operations.On August 26, Axios reported that the U.S. Navy has cleared the main shipping lane in the Strait of Hormuz, the Traffic Separation Channel (TSS) between Iran and Oman, allowing more oil tankers to pass. According to U.S. officials, over the past few months, U.S. Navy underwater drones have systematically scanned the area, detecting more than 100 suspected mines. The U.S. military subsequently collaborated with private companies to clear or detonate these mines. In the past 30 days, more than 500 ships have passed through the southern channel of the strait, with only about 2% being attacked by Iranian drones or missiles. Trump stated that any ships or vessels that re-mine mines will be "immediately and systematically destroyed." U.S. officials said that with the main shipping lane reopened, ships can pass through the Strait of Hormuz in both directions under U.S. protection, facilitating the flow of more oil into global markets.

Oil costs increase as supply restrictions trump economic worries

Charlie Brooks

Jul 05, 2022 11:12


Oil prices climbed on Monday as supply worries spurred by a decrease in OPEC production, unrest in Libya, and sanctions against Russia trumped fears of a worldwide recession that would diminish demand.


In June, Euro zone inflation hit an all-time high, boosting the case for rapid rate rises by the European Central Bank, while consumer sentiment in the United States reached an all-time low.


Brent oil rose $2.26, or 2%, to $113.89 a barrel as of 12:47 p.m. ET (1648 GMT), after shedding more than $1 in early trading. The price of U.S. West Texas Intermediate (WTI) crude rose $2.20, or 2%, to $110.63 despite the lack of trading activity over the Fourth of July holiday.


According to a Reuters survey, the Organization of the Petroleum Exporting Countries (OPEC) failed to meet its June goal of increasing production.


Thursday, authorities in OPEC member Libya declared force majeure at the Es Sidr and Ras Lanuf ports and the El Feel oilfield, claiming a reduction of 865,000 barrels per day in oil output (bpd).


Meanwhile, more than two weeks of unrest have caused Ecuador to lose almost 2 million barrels of production, according to Petroecuador, the country's state-owned oil company.


This week, a strike in Norway may restrict supply from the biggest oil producer in Western Europe and reduce overall petroleum production by 8 percent.


"This background of rising supply interruptions clashes with a probable shortage of spare production capacity among Middle Eastern oil producers," said Stephen Brennock of oil trader PVM, referring to the producers' limited ability to pump more oil.


And prices will climb if new oil production does not reach the market shortly.


On Monday, British Prime Minister Boris Johnson asked OPEC+ to raise oil output to tackle the growing cost of living.


As a consequence of Russia's invasion of Ukraine, supply concerns have sent Brent oil prices close to 2008's record high of $147 a barrel.


As a consequence of restrictions on Russian oil and limited gas supplies, surging energy prices have driven inflation in certain countries to multi-decade highs and stoked fears of a recession.


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