Brent touched its highest price in 10 days after Trump said he was reducing the 50-day deadline he gave Russia

International News via Reuters:

Oil prices rose 2% on Monday after a trade deal between the U.S. and the European Union, and U.S. President Donald Trump’s announcement that he would shorten the deadline for Russia to end its war in Ukraine or face sanctions.

Brent crude futures were up $1.36, or 2%, at $69.80 a barrel by 10:58 a.m. EDT (1458 GMT), while U.S. West Texas Intermediate crude rose $1.33, or 2%, at $66.49.

Brent touched its highest price in 10 days after Trump said he was reducing the 50-day deadline he gave Russia over its war in Ukraine to 10-12 days. 

The deal between the U.S. and EU and a possible extension of the U.S.-China tariff pause are also supporting global financial markets and oil prices, said Tony Sycamore, a market analyst at IG.

The framework trade pact with the EU announced on Sunday sets a 15% U.S. import tariff on most EU goods. Trump also said it called for $750 billion of EU purchases of U.S. energy in the coming years.

“Europe is going to have to give up a big percentage of everything they’re getting from Russia,” said Phil Flynn, senior analyst with Price Futures Group. “Not only does it (the trade pact) give U.S. producers a huge boost with this commitment, it also puts more pressure on (Russian President Vladimir) Putin to come to the table.”

Senior U.S. and Chinese officials are meeting in Stockholm on Monday to try to extend their tariff truce before an August 12 deadline.

The U.S.-EU deal removed another layer of uncertainty, and the focus seems to be shifting back towards fundamentals, said Tamas Varga, an analyst at PVM, adding that a strong dollar and falling Indian oil imports have weighed on crude prices.

On the supply side, an OPEC+ panel on Monday stressed the need for full compliance with oil production agreements, ahead of Sunday’s separate gathering of eight OPEC+ members to decide on increasing oil output for September.

ING expects OPEC+, the group that includes the Organization of the Petroleum Exporting Countries and allies such as Russia, to at least complete the full return of 2.2 million barrels per day of additional voluntary supply cuts by the end of September.

Reporting by Stephanie Kelly in New York; Additional reporting by Enes Tunagur and Seher Dareen in London, Florence Tan in Singapore and Sam Li in Beijing; Editing by Giles Elgood, Barbara Lewis, David Goodman, Paul Simao, Rod Nickel

The EU investigation will also look into possible negative effects in the internal market

International News via Reuters:

Abu Dhabi state oil giant ADNOC’s 14.7 billion euro ($17.2 billion) bid for German chemicals company Covestro may face hurdles after EU antitrust regulators opened an investigation on Monday into potential distortions caused by foreign subsidies.

ADNOC struck the deal to buy Covestro last October, marking its biggest ever acquisition and one of the largest foreign takeovers of an EU company by a Gulf state.

The European Commission, which has been reviewing the deal under its foreign subsidies rules since May, opened an in-depth investigation on Monday, warning that subsidies granted by the United Arab Emirates could distort the EU internal market.

The Commission, which acts as the EU competition enforcer, said the possible foreign subsidies include an unlimited guarantee from the UAE, as well as a committed capital increase by ADNOC into Covestro.

“ADNOC may have offered an unusually high price and other favourable conditions, which may have deterred other investors from making an offer,” it said in a statement.

The EU investigation will also look into possible negative effects in the internal market resulting from the merged company’s activities once the deal is concluded.

“XRG and Covestro remain in constructive discussions with the European Commission and are cooperating to conclude the FSR review,” the German company said in a statement. XRG is the international investment arm of ADNOC.

The Commission set a December 2 deadline for its decision on the deal.

The EU’s Foreign Subsidies Regulation (FSR) focuses on unfair foreign aid for companies in a bid to rein in unfair competition from non-EU companies subsidised by their governments.

UAE telecoms group e& secured EU approval to buy parts of Czech telecoms company PPF last year after agreeing to scrap an unlimited state guarantee and not to channel foreign subsidies to the activities of the merged company in the EU.

($1 = 0.8569 euros)

Reporting by Bart Meijer. Additional reporting by Patricia Weiss in Frankfurt and Bartosz Dabrowski in Gdansk. Writing by Foo Yun Chee. Editing by Louise Heavens and Mark Potter

The EU committed to buying $250 billion annually in U.S. LNG as part of the framework trade agreement unveiled on Sunday

International News via Reuters:

Shares of U.S. liquefied natural gas developers surged in premarket trading on Monday, after the European Union pledged to purchase $750 billion worth of the super-cooled fuel over the next three years as part of a sweeping trade pact.

NextDecade, Venture Global, and Cheniere Energy jumped between 7% and 8.8%, with the deal bolstering the prospects for American LNG exporters as they expand to meet growing demand for cleaner-burning fuels.

The EU, seeking to phase out its dependence on Russian gas, committed to buying $250 billion annually in U.S. LNG as part of the framework trade agreement unveiled on Sunday.

The U.S. became the world’s biggest LNG supplier in 2023, surpassing Australia and Qatar, as surging global prices fed demand for more exports, due in part to supply disruptions and sanctions linked to Russia’s 2022 invasion of Ukraine.

The agreement imposes a 15% U.S. import tariff on most EU goods, a softer blow than markets had feared.

“Terms of the EU-U.S. trade deal were at the forefront, with the 15% tariff level better than feared (30% was mooted previously),” said Ashley Kelty, an analyst at Panmure Liberum.

“This should see less of a drag on industrial activity between the two.”

Still, Kelty noted the deal could weigh on gas prices.

“The demand for the EU to buy more U.S. energy will see more U.S. LNG imports in the future,” Kelty said, signalling a potential supply glut.

Shares of U.S. natural gas producers Expand Energy and EQT Corp were up 1.6% and 3%, respectively, before the bell.

Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj Kalluvila

The high-level French criticism stood in contrast with the more benign reaction from Berlin and Rome

International News via Reuters:

France called a framework trade deal between the United States and European Union a “dark day” for Europe, saying the bloc had caved in to U.S. President Donald Trump with an unbalanced deal that slaps a headline 15% tariff on EU goods while sparing U.S. imports from any immediate European retaliation.

The criticism from Prime Minister Francois Bayrou followed months of French calls for EU negotiators to take a tougher stance against Trump by threatening reciprocal measures — a position that contrasted with the more conciliatory approaches of Germany and Italy.

“It is a dark day when an alliance of free peoples, brought together to affirm their common values and to defend their common interests, resigns itself to submission,” Bayrou wrote on X of what he called the “von der Leyen-Trump deal”.

The high-level French criticism, and President Emmanuel Macron’s silence since the deal was signed between Trump and European Commission President Ursula von der Leyen, stood in contrast with the more benign reaction from Berlin and Rome.

French government ministers acknowledged the agreement had some benefits — including exemptions for sectors such as spirits and aerospace — but said it remained fundamentally unbalanced.

“This state of affairs is not satisfactory and cannot be sustained,” French European Affairs Minister Benjamin Haddad said on X, urging the EU to activate its so-called anti-coercion instrument, which would allow for non-tariff retaliation.

Trade Minister Laurent Saint-Martin criticised the EU’s handling of the negotiations, saying the bloc should not have refrained from hitting back in what he described as a power struggle initiated by Trump.

“Donald Trump only understands force,” he told France Inter radio. “It would have been better to respond by showing our capacity to retaliate earlier. And the deal could have probably looked different,” he added.

Macron had said that the EU should respond in kind if the United States slapped tariffs on EU goods, and apply equivalent measures on U.S. imports into the bloc, in particular on services, in which the U.S. enjoys a surplus with the EU.

But the softer line advocated by German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni, whose countries are more dependent than France on exports to the U.S., prevailed.

(Reporting by Sudip Kar-GuptaEditing by Kim Coghill, Toby Chopra, Peter Graff)France called a framework trade deal between the United States and European Union a “dark day” for Europe, saying the bloc had caved in to U.S. President Donald Trump with an unbalanced deal that slaps a headline 15% tariff on EU goods while sparing U.S. imports from any immediate European retaliation.

The criticism from Prime Minister Francois Bayrou followed months of French calls for EU negotiators to take a tougher stance against Trump by threatening reciprocal measures — a position that contrasted with the more conciliatory approaches of Germany and Italy.

“It is a dark day when an alliance of free peoples, brought together to affirm their common values and to defend their common interests, resigns itself to submission,” Bayrou wrote on X of what he called the “von der Leyen-Trump deal”.

The high-level French criticism, and President Emmanuel Macron’s silence since the deal was signed between Trump and European Commission President Ursula von der Leyen, stood in contrast with the more benign reaction from Berlin and Rome.

French government ministers acknowledged the agreement had some benefits — including exemptions for sectors such as spirits and aerospace — but said it remained fundamentally unbalanced.

“This state of affairs is not satisfactory and cannot be sustained,” French European Affairs Minister Benjamin Haddad said on X, urging the EU to activate its so-called anti-coercion instrument, which would allow for non-tariff retaliation.

Trade Minister Laurent Saint-Martin criticised the EU’s handling of the negotiations, saying the bloc should not have refrained from hitting back in what he described as a power struggle initiated by Trump.

“Donald Trump only understands force,” he told France Inter radio. “It would have been better to respond by showing our capacity to retaliate earlier. And the deal could have probably looked different,” he added.

Macron had said that the EU should respond in kind if the United States slapped tariffs on EU goods, and apply equivalent measures on U.S. imports into the bloc, in particular on services, in which the U.S. enjoys a surplus with the EU.

But the softer line advocated by German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni, whose countries are more dependent than France on exports to the U.S., prevailed.

Reporting by Sudip Kar-GuptaEditing by Kim Coghill, Toby Chopra, Peter Graff

Six Pacific Island countries are at high risk of debt distress, the bank says

International News via Reuters:

The World Bank has maintained its focus on climate change and gender equality issues in the Pacific, managing director of operations Anna Bjerde said on a visit to Australia, even as its largest shareholder the United States reduces aid in those areas.

After meeting Pacific Islands economic ministers in Fiji, Bjerde said countries in the region continued to worry about being exposed to the accelerating effects of climate change, and had grave concerns about food security and rising debt levels.

Six Pacific Island countries are at high risk of debt distress, the bank says.

The World Bank is moving a regional vice president from Washington to Singapore, and will move directors from Australia to Fiji and Papua New Guinea, to be closer to a $3.4 billion Pacific aid programme that has grown seven-fold in 10-15 years, she said in an interview on Monday.

“We are committed to designing projects that really take into account the vulnerabilities of countries we work in. In this part of the world, countries are vulnerable to the impact of climate change,” she said.

“We haven’t really changed our language around that,” she added.

Pacific road projects designed to be flood-resilient provide better infrastructure that can withstand the changing climate and also be counted in climate finance programmes, Bjerde said.

The World Bank was focussed on boosting women’s workforce participation to help lift the region’s economic growth, she said, after meeting women leaders in Fiji who highlighted the need for childcare so women can work.

On Monday, Bjerde also met officials from the Australian government, the largest bilateral donor to the region.

Under reforms introduced last year by its president Ajay Banga, the World Bank has started to roll out region-wide programmes to have a bigger impact among Pacific countries with small populations.

Eight countries have joined an arrangement that stops small island states being cut off from the international financial system, while a health programme targeting non-communicable disease will potentially reach 2 million people across the Pacific Ocean and train 16,000 health workers.

A trade programme is also being designed to give access to goods faster and more cheaply, she said.

Banga will attend the region’s annual leaders’ meeting, the Pacific Islands Forum, for the first time in September.

Reporting by Kirsty Needham in Sydney; Editing by Kate Mayberry and David Holmes

Its net income dropped to 324 million euros ($378 million)

International News via Reuters:

Spain’s second-largest oil refiner Moeve, formerly known as Cepsa, said on Monday its net profit fell 19% in the first half of the year mainly due to the impact of a massive power blackout in April in Spain and Portugal on its refineries.

Its net income dropped to 324 million euros ($378 million), while earnings before interest, taxes, amortisation and depreciation fell 33% from a year ago to 733 million euros ($855.92 million).

The company attributed the core profit’s decline mainly to the cost of halting and restarting its two oil refineries during and after the April 28 blackout. It can take one or two weeks for such plants to be fully operational after shutdowns.

The Moeve refineries also halted for scheduled maintenance during the first six months of this year, which further reduced utilisation ratios.

The company did not release an estimate of the cost of the outage, though rival Repsol, which operates five refineries in Spain, said the blackout and other smaller power-supply issues cost it 175 million euros in the second quarter.

Owned by Abu Dhabi fund Mubadala and U.S.-based private equity firm the Carlyle Group, Moeve rebranded last year to reflect its shift towards low-carbon businesses under an 8-billion-euro plan. It has sold 70% of its oil production assets since 2022, including operations in Abu Dhabi and South America.

($1 = 0.8564 euros)

($1 = 0.8570 euros)

Reporting by Inti Landauro