AVN 70.61 Increased By ▲ 4.31 (6.5%)
BOP 9.53 Decreased By ▼ -0.26 (-2.66%)
CHCC 128.21 Decreased By ▼ -1.69 (-1.3%)
DCL 11.24 Decreased By ▼ -0.23 (-2.01%)
DGKC 110.50 Decreased By ▼ -0.80 (-0.72%)
EFERT 59.66 Decreased By ▼ -1.08 (-1.78%)
EPCL 44.50 Increased By ▲ 1.00 (2.3%)
FCCL 20.74 Decreased By ▼ -0.66 (-3.08%)
FFL 17.79 Decreased By ▼ -1.61 (-8.3%)
HASCOL 20.94 Decreased By ▼ -0.94 (-4.3%)
HBL 131.55 Decreased By ▼ -1.90 (-1.42%)
HUBC 81.81 Decreased By ▼ -2.44 (-2.9%)
HUMNL 8.02 Decreased By ▼ -0.41 (-4.86%)
JSCL 27.04 Decreased By ▼ -0.51 (-1.85%)
KAPCO 26.82 Decreased By ▼ -0.69 (-2.51%)
KEL 4.12 Decreased By ▼ -0.21 (-4.85%)
LOTCHEM 12.82 Decreased By ▼ -0.39 (-2.95%)
MLCF 38.91 Decreased By ▼ -0.19 (-0.49%)
OGDC 109.31 Decreased By ▼ -2.04 (-1.83%)
PAEL 37.62 Decreased By ▼ -0.63 (-1.65%)
PIBTL 13.39 Decreased By ▼ -0.49 (-3.53%)
PIOC 95.10 Decreased By ▼ -1.06 (-1.1%)
POWER 9.08 Decreased By ▼ -0.30 (-3.2%)
PPL 96.34 Decreased By ▼ -2.01 (-2.04%)
PSO 199.67 Decreased By ▼ -5.24 (-2.56%)
SNGP 64.25 Decreased By ▼ -0.45 (-0.7%)
STPL 13.13 Decreased By ▼ -0.41 (-3.03%)
TRG 56.45 Decreased By ▼ -0.11 (-0.19%)
UNITY 17.73 Decreased By ▼ -1.25 (-6.59%)
WTL 1.23 Decreased By ▼ -0.03 (-2.38%)
BR100 4,351 Decreased By ▼ -51.17 (-1.16%)
BR30 22,172 Decreased By ▼ -274.57 (-1.22%)
KSE100 41,738 Decreased By ▼ -436.38 (-1.03%)
KSE30 17,684 Decreased By ▼ -206.14 (-1.15%)
COVID-19 TOTAL DAILY
CASES 288,047 747
DEATHS 6,162 9

NEW YORK: Oil prices rose on Friday and were on track for monthly gains, benefiting from news that US oil output cuts in May were the largest on record. Brent crude was up 24 cents, or 0.7%, at $43.18 a barrel by 1 p.m. EDT (1700 GMT). On Thursday, Brent closed 1.9% down after touching its lowest level since July 10.

US crude was down 4 cents, or 1%, to $39.88 after dropping 3.3% in the previous session, also off lows not seen since July 10. Brent is on track for a fourth month of gains and US crude is heading for a third as both rise from depths hit in April, when much of the world was in lockdown due to the coronavirus pandemic.

US crude oil production plummeted in May, falling a record 2 million barrels per day to 10 million bpd, the US Energy Information Administration said in a monthly report on Friday.

"After a bad day for big oil with terrible earnings, we're starting to see the impact in barrels," said Phil Flynn, an analyst at Price Futures in Chicago. "This suggests that we will see a tighter market in the future, and if the economy turns around we will have trouble meeting demand."

The dollar extended its dramatic fall on Friday and was on course for its biggest monthly drop in a decade after news on Thursday that US gross domestic product collapsed at a 32.9% annualized rate - the steepest decline in output since records began in 1947.

Investors typically use dollar-denominated commodities as safe havens when the currency weakens.

"Global stimulus and a weak dollar will continue to support oil prices, as historically oil is seen as a hedge against inflation," said Keshav Lohiya, chief executive officer of consultancy Oilytics. Globally, the economic outlook has dimmed again, with increasing coronavirus infections raising the risk of renewed lockdowns and threatening any rebound, according to Reuters polls of more than 500 economists.

Weaker refining margins around the world, lower Chinese oil demand and high crude inventories are putting further pressure on oil prices, Lohiya said. Bjornar Tonhaugen, head of oil markets at Oslo-based Rystad Energy, said traders will next week closely monitor oil output increases by the Organization of the Petroleum Exporting Countries (OPEC) and its allies.

The group, known as OPEC+, collectively plans to increase production from Saturday, adding about 1.5 million barrels per day to global supply, after slashing output in the wake of the pandemic.