Oil prices steady as mixed US economic news offsets new EU sanctions on Russia
How did your country report this? Share your view in the comments.
Diverging Reports Breakdown
COMEX copper hits record after Trump says he will impose 50% tariff on copper imports
Copper prices in the United States jumped more than 12% to a record high above $12,330 per metric ton. U.S. President Donald Trump said he would announce a 50% tariff on imports of the metal on Tuesday. Trump told reporters at a White House cabinet meeting that he planned to make the copper tariff announcement later in the day.
LONDON, July 8 (Reuters) – Copper prices in the United States jumped more than 12% to a record high above $12,330 per metric ton after U.S. President Donald Trump said he would announce a 50% tariff on imports of the metal on Tuesday.
Trump told reporters at a White House cabinet meeting that he planned to make the copper tariff announcement later in the day, but he did not say when the tariff would take effect.
Sign up here.
In February, the U.S. launched a probe into the possibility of tariffs on copper imports to help support local production and incentivise investment in new capacity. The deadline for the investigation to conclude is November.
The threat of tariffs on the metal used in the power and construction industries has created a massive premium for copper prices on COMEX above those on the London Metal Exchange, which are currently around $9,585 a ton .
Traders expect the premium – also at a record around $2,750 a ton – to attract more metal to the United States.
Reporting by Pratima Desai. Editing by Mark Potter
Our Standards: The Thomson Reuters Trust Principles. , opens new tab
Greek Fleet to Keep Shipping Approved Russian Oil Despite New EU Sanctions, Sources Say
The EU on Friday agreed an 18th package of sanctions against Russia over its war in Ukraine. Much of Russia’s oil is now exported by a so-called “shadow fleet’ of unregulated tankers. The EU will seek to prevent purchases of Russian crude at less than 85% of the average market price. This currently puts the cap around $47.60 a barrel, far below the largely ineffective $60 cap that the Group of Seven Western powers had sought to impose.“As long as traders keep buying oil at that price, things won’t change much, we’ll respect the new cap.”
ATHENS, July 18 (Reuters) – Greek tanker operators shipping approved Russian oil exports are expected to continue doing so despite a new wave of tougher sanctions by the European Union that will further tighten restrictions, shipping sources said on Friday.
Get the Latest US Focused Energy News Delivered to You! It’s FREE: Quick Sign-Up Here
Much of Russia’s oil is now exported by a so-called “shadow fleet” of unregulated tankers, but shipping data shows Greek-owned ships, part of the world’s largest tanker fleet, have also been carrying some of the share of Russian crude that does not fall under sanctions or exceed the price cap.
The EU on Friday agreed an 18th package of sanctions against Russia over its war in Ukraine, including measures aimed at dealing further blows to its vital energy industry.
Central to the measures is a price cap under which the EU will seek to prevent purchases of Russian crude at less than 85% of the average market price. This currently puts the cap around $47.60 a barrel, far below the largely ineffective $60 cap that the Group of Seven Western powers had sought to impose.
Greek shipping companies, which account for dozens of oil shipments from Russia every month and an estimated 20% of overall trade, will continue to ship as much as they can, said the sources, who declined to be identified due to the sensitivity of the matter.
While it will be more difficult, such transactions remain “doable”, said one source at a Greek shipping company involved in the trade.
“As long as traders keep buying oil at that price, things won’t change much, we’ll respect the new cap.”
Greek shipping ministry officials did not immediately respond to a request for comment.
The U.S. has so far shown no desire to align itself with the EU price cap. Because most oil is sold in dollars, and only U.S. banks can restrict the clearing of dollar payments, this is likely to limit the effectiveness of the EU move.
Nevertheless, it will add complexities to sanctions-compliant trading in Russian oil by European firms.
“Similar to the previous requirements, they will need to comply with the new EU price cap and ensure that they are comfortable that they are only trading in price cap-compliant product,” said Leigh Hansson, sanctions partner at law firm Reed Smith.
“We expect that there will be a 90-day wind-down period for the transport, and related services, of Russian crude oil for contracts concluded by July 18.”
Reporting by Jonathan Saul and Renee Maltezou; Editing by Kevin Liffey
US weekly jobless claims fall; job growth appears steady in July
Initial claims for state unemployment benefits dropped 7,000 to a seasonally adjusted 221,000 for the week ended July 12. Economists polled by Reuters had forecast 235,000 claims for the latest week. Motor vehicle assembly plant closures for reasons including maintenance and annual retooling for new models could be influencing the data. The Federal Reserve’s Beige Book report on Wednesday described hiring as having “remained generally cautious” in early July, attributed by many of the U.S. central bank’s contacts to “ongoing economic and policy uncertainty” The number of people receiving benefits after an initial week of aid, a proxy for hiring, increased 2,000.
WASHINGTON, July 17 (Reuters) – The number of Americans filing new applications for jobless benefits fell last week, pointing to steady job growth in July, though some laid off workers are experiencing long spells of unemployment because of a moderation in hiring.
Initial claims for state unemployment benefits dropped 7,000 to a seasonally adjusted 221,000 for the week ended July 12, the Labor Department said on Thursday. Economists polled by Reuters had forecast 235,000 claims for the latest week.
Sign up here.
Motor vehicle assembly plant closures for reasons including maintenance and annual retooling for new models could be influencing the data. Auto manufacturers typically idle assembly lines in summer, though the timing often varies, which could throw off the model that the government uses to strip out seasonal fluctuations from the data.
Layoffs have remained generally low, though economic uncertainty stemming from trade policy has left companies hesitant to increase hiring. President Donald Trump last week announced higher duties would come into effect on August 1 for imports from a range of countries, including Mexico, Japan, Canada and Brazil, and the European Union.
Trump in April slapped a 10% duty on nearly all imports, while giving nations a 90-day period to negotiate trade deals.
The Federal Reserve’s Beige Book report on Wednesday described hiring as having “remained generally cautious” in early July, attributed by many of the U.S. central bank’s contacts to “ongoing economic and policy uncertainty.”
The Fed said while reports of layoffs were limited in all industries, they were “somewhat more common among manufacturers.” It noted that “many contacts expected to postpone major hiring and layoff decisions until uncertainty diminished.”
The claims report covered the period during which the government surveyed employers for the nonfarm payrolls component of July’s employment report. Nonfarm payrolls increased by 147,000 jobs in June, though nearly half of the positions were in the government sector, mostly state education.
Tepid hiring is underscored by the growing number of people collecting unemployment checks. The number of people receiving benefits after an initial week of aid, a proxy for hiring, increased 2,000 to a seasonally adjusted 1.956 million during the week ending July 5. The start of a new quarter could have influenced the current level of the so-called continuing claims.
“Eligibility for benefits can be affected by calendar-quarter considerations, leading to large swings in the underlying data,” said Lou Crandall, chief economist at Wrightson ICAP.
Next week’s continuing claims data could offer more clarity on the health of the labor market in July. Economists said the elevated continuing claims reading suggested an increase in the unemployment rate. While the jobless rate fell to 4.1% in June after holding at 4.2% for three straight months, that was mostly because people dropped out of the labor force.
Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Nick Zieminski
Our Standards: The Thomson Reuters Trust Principles. , opens new tab
Oil steadies as mixed US economic and tariff news offset new Russia sanctions
U.S. single-family homebuilding dropped to an 11-month low in June as high mortgage rates and economic uncertainty hampered home purchases. Crude oil futures were little changed on Friday on mixed economic and tariff news. The EU reached an agreement on an 18th sanctions package against Russia over its war in Ukraine. The ban will not apply to imports from Norway, Britain, the U.S., Canada and Switzerland, EU diplomats said.. EU has designated the largest Rosneft (ROSNMM) , opens new tab oil refinery in India as part of the measures, the EU said on X. India is the biggest importer of Russian crude while Turkey is the third-biggest, Kpler data shows. The measures are aimed at dealing further blows to Russia’s oil and energy industries.
Summary
Companies US consumer sentiment up, but homebuilding drops
US Trump seeking minimum tariffs on EU
EU to stop importing fuels from Russia
Chevron closes Hess acquisition after arbitration win
NEW YORK, July 18 (Reuters) – Crude oil futures were little changed on Friday on mixed U.S. economic and tariff news and worries about oil supplies following the European Union’s latest sanctions against Russia for its war in Ukraine.
Brent crude futures fell 24 cents, or 0.3%, to settle at $69.28 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 20 cents, or 0.3%, to end at $67.34.
Sign up here.
That put both crude benchmarks down about 2% for the week.
In the United States single-family homebuilding dropped to an 11-month low in June as high mortgage rates and economic uncertainty hampered home purchases, suggesting residential investment contracted again in the second quarter.
In another report, however, U.S. consumer sentiment improved in July, while inflation expectations continued to decline.
Lower inflation should make it easier for the U.S. Federal Reserve to reduce interest rates, which could cut consumers’ borrowing costs and boost economic growth and oil demand.
Separately, U.S. President Donald Trump is pushing for a minimum tariff of 15% to 20% in any deal with the European Union, the Financial Times reported on Friday, adding that the administration is now looking at a reciprocal tariff rate that exceeds 10%, even if a deal is reached.
“Currently envisioned reciprocal tariffs, coupled with announced sectoral levies, could push the U.S. effective tariff rate above 25%, surpassing 1930s peaks … In coming months, the tariffs should increasingly be manifest in inflation,” analysts at U.S. bank Citigroup’s Citi Research said in a note.
Rising inflation can raise prices for consumers and weaken economic growth and oil demand.
EU SANCTIONS
In Europe, the EU reached an agreement on an 18th sanctions package against Russia over its war in Ukraine , which includes measures aimed at dealing further blows to Russia’s oil and energy industries.
“New sanctions on Russian oil from the U.S. and Europe this week were met by a muted market reaction,” analysts at Capital Economics said in a note. “This is a reflection of investors doubting President Trump will follow through with his threats, and a belief that new European sanctions will be no more effective than previous attempts.”
The EU will also no longer import any petroleum products made from Russian crude, though the ban will not apply to imports from Norway, Britain, the U.S., Canada and Switzerland, EU diplomats said.
EU foreign policy chief Kaja Kallas also said on X that the EU has designated the largest Rosneft (ROSN.MM) , opens new tab oil refinery in India as part of the measures.
India is the biggest importer of Russian crude while Turkey is the third-biggest, Kpler data shows.
“This shows the market fears the loss of diesel supply into Europe, as India had been a source of barrels,” said Rystad Energy’s vice president of oil markets, Janiv Shah.
Reporting by Scott DiSavino in New York, Robert Harvey and Enes Tunagur in London and Siyi Liu in Singapore; Editing by Emelia Sithole-Matarise, David Goodman, Matthew Lewis and Marguerita Choy
Our Standards: The Thomson Reuters Trust Principles. , opens new tab
Share X
Link Purchase Licensing Rights
Argentina files emergency appeal in US to put YPF stake turnover on hold
Argentina on Thursday filed an emergency appeal of a U.S. judge’s order that it turn over its 51% stake in oil and gas company YPF. The case centers on Argentina’s 2012 seizure of the 51% YPF stake from Spain’s Repsol (REP.MC) Argentina says requiring a turnover by Monday would irreparably harm its sovereignty, destabilize its economy and cause the irrevocable loss of a controlling stake in the country’s largest energy company. Argentina asked the appeals court to decide its motion by 10 a.m. EDT on Monday, so it could appeal to the Supreme Court if necessary.
BUENOS AIRES/NEW YORK, July 10 (Reuters) – Argentina on Thursday filed an emergency appeal of a U.S. judge’s order that it turn over its 51% stake in oil and gas company YPF (YPFDm.BA) , opens new tab to partially satisfy a $16.1 billion court judgment.
Saying “the stakes could not be higher,” Argentina told the 2nd U.S. Circuit Court of Appeals in Manhattan that requiring a turnover by Monday would irreparably harm its sovereignty, destabilize its economy and cause the irrevocable loss of a controlling stake in the country’s largest energy company.
Sign up here.
Argentine President Javier Milei has been seeking to bolster foreign currency reserves and rein in soaring inflation, while navigating a heavy debt burden.
The country asked that the YPF turnover be put on hold while it appeals.
The case centers on Argentina’s 2012 seizure of the 51% YPF stake from Spain’s Repsol (REP.MC) , opens new tab without making a tender offer to minority shareholders Petersen Energia Inversora and Eton Park Capital Management.
In September 2023, U.S. District Judge Loretta Preska in Manhattan ordered Argentina to pay $14.39 billion to Petersen and $1.71 billion to Eton Park.
Argentina hasn’t, and has been appealing that decision. On June 30, Preska ordered Argentina to turn over the YPF stake within 14 days.
The plaintiffs are represented by litigation funder Burford Capital (BURF.L) , opens new tab , which has said it expected to receive 35% and 73% of Petersen’s and Eton Park’s respective damages.
In Thursday’s appeal, Argentina also said a YPF turnover would violate international law and comity, and mark a “sea change” in how U.S. courts interact with the rest of the world.
“To flip the script, this order is akin to a foreign trial court directing the U.S. government to pack up the gold stored at Fort Knox and ship it abroad based on that court’s erroneous interpretation of U.S. law,” Argentina said.
Argentina asked the appeals court to decide its motion by 10 a.m. EDT on Monday, so it could appeal to the U.S. Supreme Court if necessary.
On Thursday evening, Preska said she will decide by Monday whether to put the turnover on hold, and give both sides another three days to appeal.
A spokesman for Argentina declined to comment.
Reporting by Eliana Raszewski and Jonathan Stempel; Writing by Natalia Siniawski; Editing by Aida Pelaez-Fernandez and Cynthia Osterman
Our Standards: The Thomson Reuters Trust Principles. , opens new tab