AVN 70.30 Increased By ▲ 5.66 (8.76%)
BOP 10.04 Increased By ▲ 0.19 (1.93%)
CHCC 121.45 Increased By ▲ 0.93 (0.77%)
DCL 10.30 Increased By ▲ 0.20 (1.98%)
DGKC 106.60 Increased By ▲ 3.45 (3.34%)
EFERT 61.40 Increased By ▲ 0.30 (0.49%)
EPCL 41.15 Decreased By ▼ -0.05 (-0.12%)
FCCL 20.10 Increased By ▲ 0.19 (0.95%)
FFL 16.76 Increased By ▲ 0.85 (5.34%)
HASCOL 21.15 Increased By ▲ 0.61 (2.97%)
HBL 130.89 Increased By ▲ 4.44 (3.51%)
HUBC 79.45 Decreased By ▼ -0.09 (-0.11%)
HUMNL 7.80 Increased By ▲ 0.20 (2.63%)
JSCL 27.18 Increased By ▲ 0.48 (1.8%)
KAPCO 26.94 Increased By ▲ 0.44 (1.66%)
KEL 4.24 Increased By ▲ 0.04 (0.95%)
LOTCHEM 12.12 Increased By ▲ 0.07 (0.58%)
MLCF 37.22 Increased By ▲ 1.12 (3.1%)
OGDC 105.38 Increased By ▲ 0.38 (0.36%)
PAEL 34.59 Increased By ▲ 0.69 (2.04%)
PIBTL 12.79 Increased By ▲ 0.41 (3.31%)
PIOC 93.52 Increased By ▲ 4.12 (4.61%)
POWER 9.11 Increased By ▲ 0.31 (3.52%)
PPL 93.51 Increased By ▲ 1.65 (1.8%)
PSO 205.41 Increased By ▲ 7.95 (4.03%)
SNGP 62.60 Increased By ▲ 1.40 (2.29%)
STPL 13.39 Increased By ▲ 0.21 (1.59%)
TRG 54.75 Increased By ▲ 0.96 (1.78%)
UNITY 17.35 Decreased By ▼ -0.04 (-0.23%)
WTL 1.18 Increased By ▲ 0.06 (5.36%)
BR100 4,208 Decreased By ▼ -79.37 (-1.85%)
BR30 21,312 Decreased By ▼ -426.47 (-1.96%)
KSE100 40,571 Decreased By ▼ -632.88 (-1.54%)
KSE30 17,205 Decreased By ▼ -264.83 (-1.52%)
COVID-19 TOTAL DAILY
CASES 312,263 747
DEATHS 6,479 5
Business

Oil rises as storm closes US production, inventories drop

  • More than 25% of U.S. offshore oil and gas output was shut and export ports were closed on Tuesday as Hurricane Sally sat just off the U.S. Gulf Coast.
16 Sep 2020

Oil prices rose for a second day on Wednesday as a hurricane closed U.S. offshore oil and gas production and an industry report showed a decrease in U.S. crude inventories.

Brent crude rose 60 cents, or 1.5%, to $41.13 a barrel by 0518 GMT, while U.S. crude rose 68 cents, or 1.8%, to $38.96. Both contracts rose by more than 2% on Tuesday.

More than 25% of U.S. offshore oil and gas output was shut and export ports were closed on Tuesday as Hurricane Sally sat just off the U.S. Gulf Coast.

“Our current estimate for the total outage associated with the Sally weather system is between 3 million and 6 million barrels of oil over approximately 11 days,” Rystad Energy said in a note.

That is likely to help reduce stockpiles although refineries were also shut down, cutting demand for oil. U.S. crude oil inventories fell by 9.5 million barrels last week, although gasoline inventories increased, data from industry group the American Petroleum Institute (API) showed on Tuesday.

Analysts had expected oil stocks to increase by 1.3 million barrels. Official data on U.S. stockpiles is due out later on Wednesday and often conflicts with the industry figures.

“If we see a number similar to the ... drawdown the API reported overnight, it would likely provide some immediate support to the market,” ING Research said.

However, oil producers and traders are painting a bleak picture for a recovery in global fuel demand as the COVID-19 pandemic rages on, hammering economies.