Trump’s tariffs have raised uncertainty across the market and concerns that they could have a negative effect on the global economy and oil demand

International News via Reuters:

Oil prices edged up to a two-week high on Tuesday as positive U.S. economic news, lower U.S. oil production and rising demand for oil products countered OPEC+ output increases and worries U.S. tariffs could reduce energy demand.

Brent crude futures rose 88 cents, or 1.3%, to $70.46 a barrel at 1:07 p.m. EDT (1707 GMT), while U.S. West Texas Intermediate (WTI) crude rose 75 cents, or 1.1%, to $68.68.

That put both crude benchmarks on track for their highest closes since June 23 for a second day in a row.

U.S. consumers’ outlook on inflation was little changed last month as households upgraded their views on the state of their finances and ability to get credit, according to a report released on Tuesday by the New York Federal Reserve.

Central banks like the U.S. Fed use interest rates to keep inflation in check. Lower interest rates can spur economic growth and demand for oil by reducing consumer borrowing costs.

The U.S. will produce less oil in 2025 than previously expected as declining oil prices have prompted U.S. producers to slow activity this year, according to the latest U.S. Energy Information Administration outlook.

In Asia, meanwhile, powerhouse economies Japan and South Korea said on Tuesday they would try to negotiate with the U.S. to soften the impact of sharply higher tariffs that U.S. President Donald Trump now plans to impose from the start of August.

Trump ramped up his trade war again on Monday, telling 14 nations that they would face tariffs ranging from 25% for countries including Japan and South Korea, to 40% for Laos and Myanmar.

Trump’s tariffs have raised uncertainty across the market and concerns that they could have a negative effect on the global economy and oil demand.

In Germany, the biggest economy in Europe, exports fell more than expected in May, data showed on Tuesday, as demand from the U.S. dropped for the second consecutive month due to the impact of tariffs.

OPEC+ UNWINDING OUTPUT CUTS

While prices seem to be pressured by OPEC+ unwinding its voluntary output cuts, tightness in middle distillates and Houthi attacks on cargo ships are supporting the market, said Janiv Shah, an analyst at energy consultancy Rystad Energy.

Energy traders noted rising prices for U.S. gasoline and diesel in recent weeks have boosted the diesel crack spread to its highest since March 2025 and the 3:2:1- crack spread to its highest in six weeks. Crack spreads measure refining profit margins.

“The energy complex appears well supported as underscored by its ability to not only shrug off the larger than expected OPEC production intentions for next month but to advance … yesterday in the face of the OPEC headlines,” analysts at energy advisory firm Ritterbusch and Associates said in a note.

On Saturday, the OPEC+ group comprising the Organization of the Petroleum Exporting Countries (OPEC) and its allies, like Russia, agreed to raise production by 548,000 barrels per day (bpd) in August, exceeding the 411,000 bpd increases in the previous three months.

The producer group is set to approve an increase of about 550,000 bpd for September when it meets on August 3, sources told Reuters, which would unwind all of the cuts.

Reporting by Scott DiSavino and Stephanie Kelly in New York, Seher Dareen and Paul Carsten in London, and Jeslyn Lerh in Singapore; Editing by David Goodman, Mark Potter, Emelia Sithole-Matarise and Joe Bavier

Residents were told not to evacuate unless ordered so that roads could be left clear for rescue services

International News via Reuters:

Hundreds of firefighters battled a fast-moving wildfire that reached the outskirts of the southern French city of Marseille on Tuesday, forcing people to stay indoors and the nearby airport to close.

Aided by firefighting helicopters and aircraft, the firefighters had the blaze under control by evening, officials said, but a forecast of more strong winds meant it might yet advance further towards France’s second most populous city.

The fire, fanned by winds of up to 70 kph (43 mph), could be smelt in the centre of Marseille as thick clouds of smoke hovered over the city on the Mediterranean coast.

“It’s very striking – apocalyptic even,” said Monique Baillard, a resident of Les Pennes-Mirabeau, the town north of Marseille where officials said the fire started on a highway. 

The fire has burnt through 700 hectares (1,730 acres) and was considered to be under control even though it is still burning, regional prefect Georges-Francois Leclerc said.

About 20 buildings have been at least partly hit by the fire but no fatalities have been reported and hundreds of homes have been saved by firefighters, he said. Over 700 firefighters were battling the blaze, aided by firefighting helicopters and aircraft.

Wildfires, which have become more destructive in Mediterranean countries in recent years and attributed to climate change, were also raging in northeastern Spain, where large parts of the country were on high alert for fires.

There were also fires last week on the Greek island of Crete and in Athens, as much of Europe sweltered in an early summer heatwave. 

As the fire was spreading, residents of Marseille received official alerts on their phones telling them to stay at home and put damp cloths on any openings.

“As we speak, it’s a battle,” Payan said, likening tackling the wildfire to “guerrilla warfare”.

“We’re waiting to see what happens overnight, because that’s critical too. Everything is strategic: wind speed, humidity, nightfall — every factor matters. Once again, it’s extremely complex, and the work is incredibly difficult.”

RESIDENTS CONFINED

Two residents of the 16th borough, in the north of Marseille, near where the fire started, described how scared they had been.

“It was dangerous, a lot of very dark smoke, we were really afraid. Police and firefighters did a great job,” said one resident, who did not give his name and said things now looked under control in his neighbourhood.

Residents were told not to evacuate unless ordered so that roads could be left clear for rescue services.

“At this stage, populations must remain confined,” the Provence-Alpes-Côte d’Azur prefecture posted on X. “Close shutters, doors, keep your property clear for emergency services, and do not travel on the roads.”

Anne, a 51-year-old woman who works in Marseille and lives on the outskirts, said by phone: “The sky is grey with ash, and the smell of fire is very strong in the centre of Marseille.”

In the coastal neighbourhood of l’Estaque, restaurant owner Simon Epenmbia said he was huddling in the restaurant with his family and neighbours.

“We are relatively close to the sea, where we feel safer for now and there is less smoke,” he said. “I also saw other people who came here towards the beach and are sheltering in their cars.”

A spokesperson for Marseille airport, France’s fourth-busiest, said planes had not been taking off or landing since around midday and some flights had been diverted to Nice, Nimes and other regional airports. It was unclear when it would reopen.

Many train lines heading to and from Marseille were suspended. Some roads and highways were also shut.

A wildfire that started near Narbonne, in southwestern France, was also still active on Monday. Some 2,000 hectares have burnt there, the local prefecture said. 

Reporting by Marc Leras in Marseille and Dominique Vidalon, Gabriel Stargardter, Sudip Kar-Gupta, John Irish, Richard Lough, Makini Brice, Tassilo Hummel, Geert de Clercq in Paris; Writing by Ingrid Melander; Editing by Richard Lough and Aidan Lewis