Oil prices headed south again this week, leaving them about US$20 off record highs amid a drop in fuel demand across the US, the world’s biggest consumer of energy.
Crude futures had risen earlier on Friday and on Thursday in what traders described as a technical rebound following two days of heavy falls.
Ken Hasegawa, manager of the energy desk at Newedge brokerage, cited by Dow Jones Newswires, said on Friday that the market would trade in a short-term range of US$123 to US$128.
On Wednesday, crude futures had tumbled by about US$4 after a bigger-than-expected increase in US gasoline reserves signaled weaker demand in the US.
At the same time, concerns eased over Hurricane Dolly in the Gulf of Mexico as the storm tracked away from oil installations there.
Oil prices have shot to a series of record highs this year, partly because of political tensions involving oil-producing nations like Iran, which refuses major powers’ demands to halt its disputed nuclear program. However prices have tumbled since striking record highs above US$147 on July 11.
Analysts said the US government’s latest weekly snapshot on energy inventories had suggested weaker demand for energy.
US gasoline stockpiles rose 2.9 million barrels in the week ending July 18, far outstripping analysts’ consensus forecasts for a gain of 200,000 barrels.
Gasoline consumption was also 2.4 percent lower compared to a year earlier as drivers faced sky-high pump prices of US$4.11 a gallon (3.78 liters) during a period when US demand for motor fuel is traditionally at a peak.
“The slide in crude [futures from recent highs] has been primarily driven by concerns of weaker demand as a result of higher prices, as economic problems persist,” said Michael Davies at the Sucden brokerage in London.
“Originally these fears focused on the US, with data there showing significantly lower demand for gasoline, but economic data has started to point to problems in Europe and slower growth in the key drivers of oil demand growth; China and India,” Davies said.
By Friday, New York’s main oil futures contract, light sweet crude for September delivery slid to US$124 a barrel from US$131.15 a week earlier. Brent North Sea crude for September dropped to US$125.02 from US$132.30.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
RSS