APEC Trade Chiefs Agree on More Inclusive Trade

APEC Ministers Responsible for Trade Meeting Chair Ambassador Katherine Tai delivers concluding remarks during a news conference at the Westin Book Cadillac hotel in Detroit, Michigan on May 26, 2023. (Photo by JEFF KOWALSKY / AFP)
APEC Ministers Responsible for Trade Meeting Chair Ambassador Katherine Tai delivers concluding remarks during a news conference at the Westin Book Cadillac hotel in Detroit, Michigan on May 26, 2023. (Photo by JEFF KOWALSKY / AFP)
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APEC Trade Chiefs Agree on More Inclusive Trade

APEC Ministers Responsible for Trade Meeting Chair Ambassador Katherine Tai delivers concluding remarks during a news conference at the Westin Book Cadillac hotel in Detroit, Michigan on May 26, 2023. (Photo by JEFF KOWALSKY / AFP)
APEC Ministers Responsible for Trade Meeting Chair Ambassador Katherine Tai delivers concluding remarks during a news conference at the Westin Book Cadillac hotel in Detroit, Michigan on May 26, 2023. (Photo by JEFF KOWALSKY / AFP)

Trade ministers from the Asia Pacific Economic Cooperation (APEC) countries agreed on Friday to promote more inclusive and sustainable trade, but failed to produce a joint statement due to Russia and China's objections to language on Ukraine.

Closing out two days of talks in Detroit, the APEC host, US Trade Representative Katherine Tai, instead issued a chair's statement summarizing the discussions, with an emphasis on inclusiveness, fighting climate change and sustainability.

"We reaffirm our determination to deliver a free, open, fair, non-discriminatory, transparent, inclusive and predictable trade and investment environment," the statement read.

According to Reuters, the group reaffirmed its commitment to the rules-based multilateral trading system with the World Trade Organization at
its core. "We will continue to work to ensure a level playing field to foster a favorable trade and investment environment and reaffirm our commitment to keep markets open and to address supply chain disruptions," it said.

APEC leaders last November in Bangkok approved language stating that "most members" strongly condemned the war in Ukraine and the resulting human suffering and economic impact.

But at the meeting in Detroit, China and Russia objected to including the language, leaving it to Tai's chair's statement, which noted there were differing views and that "APEC is not the forum to resolve security issues."

Tai told a news conference that she hoped APEC leaders at a November summit in San Francisco would be able to produce a joint statement.

Tai used the Detroit meeting as a venue for pushing the Biden administration's vision of a "worker-centered" trade policy to a broader international audience. She said she chose Detroit to showcase its history as a city hit hard by aggressive trade liberalization, but which has seen a rebirth and shift to new green transportation technology.

"I'm confident that APEC's reputation as an incubator of ideas and a catalyst for cooperation can also benefit our work in driving a race to the top for workers throughout the region," she said.



Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices were little changed on Thursday as investors weighed firm winter fuel demand expectations against large US fuel inventories and macroeconomic concerns.

Brent crude futures were down 3 cents at $76.13 a barrel by 1003 GMT. US West Texas Intermediate crude futures dipped 10 cents to $73.22.

Both benchmarks fell more than 1% on Wednesday as a stronger dollar and a bigger than expected rise in US fuel stockpiles pressured prices.

"The oil market is still grappling with opposite forces - seasonal demand to support the bulls and macro data that supports a stronger US dollar in the medium term ... that can put a ceiling to prevent the bulls from advancing further," said OANDA senior market analyst Kelvin Wong.

JPMorgan analysts expect oil demand for January to expand by 1.4 million barrels per day (bpd) year on year to 101.4 million bpd, primarily driven by increased use of heating fuels in the Northern Hemisphere.

"Global oil demand is expected to remain strong throughout January, fuelled by colder than normal winter conditions that are boosting heating fuel consumption, as well as an earlier onset of travel activities in China for the Lunar New Year holidays," the analysts said.

The market structure in Brent futures is also indicating that traders are becoming more concerned about supply tightening at the same time demand is increasing.

The premium of the front-month Brent contract over the six-month contract reached its widest since August on Wednesday. A widening of this backwardation, when futures for prompt delivery are higher than for later delivery, typically indicates that supply is declining or demand is increasing.

Nevertheless, official Energy Information Administration (EIA) data showed rising gasoline and distillates stockpiles in the United States last week.

The dollar strengthened further on Thursday, underpinned by rising Treasury yields ahead of US President-elect Donald Trump's entrance into the White House on Jan. 20.

Looking ahead, WTI crude oil is expected to oscillate within a range of $67.55 to $77.95 into February as the market awaits more clarity on Trump's administration policies and fresh fiscal stimulus measures out of China, OANDA's Wong said.