AIRLINK 75.14 Increased By ▲ 1.44 (1.95%)
BOP 4.89 Decreased By ▼ -0.01 (-0.2%)
CNERGY 4.42 Decreased By ▼ -0.10 (-2.21%)
DFML 43.05 Decreased By ▼ -1.83 (-4.08%)
DGKC 84.08 Decreased By ▼ -1.42 (-1.66%)
FCCL 21.26 Decreased By ▼ -0.14 (-0.65%)
FFBL 32.22 Decreased By ▼ -0.29 (-0.89%)
FFL 9.44 Decreased By ▼ -0.15 (-1.56%)
GGL 10.07 Decreased By ▼ -0.20 (-1.95%)
HASCOL 6.99 Decreased By ▼ -0.14 (-1.96%)
HBL 114.00 Decreased By ▼ -0.70 (-0.61%)
HUBC 139.15 Increased By ▲ 0.05 (0.04%)
HUMNL 12.03 Decreased By ▼ -0.39 (-3.14%)
KEL 4.92 Decreased By ▼ -0.11 (-2.19%)
KOSM 4.38 Decreased By ▼ -0.07 (-1.57%)
MLCF 37.15 Decreased By ▼ -0.45 (-1.2%)
OGDC 133.95 Decreased By ▼ -2.85 (-2.08%)
PAEL 25.06 Decreased By ▼ -0.33 (-1.3%)
PIBTL 6.58 Decreased By ▼ -0.11 (-1.64%)
PPL 118.74 Decreased By ▼ -2.26 (-1.87%)
PRL 26.06 Decreased By ▼ -0.53 (-1.99%)
PTC 13.80 Decreased By ▼ -0.30 (-2.13%)
SEARL 56.80 Decreased By ▼ -0.50 (-0.87%)
SNGP 66.90 Decreased By ▼ -1.10 (-1.62%)
SSGC 10.31 Decreased By ▼ -0.11 (-1.06%)
TELE 8.28 Decreased By ▼ -0.17 (-2.01%)
TPLP 10.87 Decreased By ▼ -0.11 (-1%)
TRG 62.55 Decreased By ▼ -0.79 (-1.25%)
UNITY 27.15 Increased By ▲ 0.10 (0.37%)
WTL 1.35 Decreased By ▼ -0.03 (-2.17%)
BR100 7,890 Decreased By -50.2 (-0.63%)
BR30 25,320 Decreased By -327.4 (-1.28%)
KSE100 75,205 Decreased By -312.9 (-0.41%)
KSE30 24,145 Decreased By -133.1 (-0.55%)
Business & Finance

Oil falls on oversupply fears after build in U.S. crude stocks

  • In early Asia, Brent crude was down 61 cents, or 1.5%, at $40.59 a barrel by 0033 GMT, having climbed nearly 2% the previous day. U.S. oil was down 66 cents, or 1.7%, at $38.91 a barrel, after gaining 2.6% on Tuesday.
Published October 28, 2020

TOKYO: Oil prices slid more than 1 percent on Wednesday, paring the previous day’s gains, as a jump in U.S. crude inventories and surging COVID-19 cases raised fears of an oversupply of oil and weak fuel demand.

In early Asia, Brent crude was down 61 cents, or 1.5%, at $40.59 a barrel by 0033 GMT, having climbed nearly 2% the previous day. U.S. oil was down 66 cents, or 1.7%, at $38.91 a barrel, after gaining 2.6% on Tuesday.

U.S. crude oil and gasoline stocks rose last week, data from industry group the American Petroleum Institute showed, with crude inventories rising by 4.6 million barrels to about 495.2 million barrels, against analysts’ expectations in a Reuters poll for a build of 1.2 million barrels.

“The higher-than-expected build in U.S. crude stocks prompted fresh selling while concerns over supply disruption from Hurricane Zeta have receded,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

Energy firms and ports along the U.S. Gulf Coast prepared on Tuesday for another test as Zeta, the 11th hurricane of the season, entered the Gulf of Mexico.

“Rising COVID-19 cases with the lack of a U.S. coronavirus fiscal relief package also dented investors’ risk appetite,” Kikukawa said, predicting that the gloomy sentiment will keep prices under pressure over the coming day.

Infections are surging again in the United States, with nearly half a million people having contracted the coronavirus in the last seven days. European governments, meanwhile, prepared to introduce new restrictions to keep cases under control.

President Donald Trump acknowledged on Tuesday that a coronavirus economic relief deal would likely come after the Nov. 3 election, with the White House unable to bridge differences with fellow Republicans in the U.S. Senate as well as congressional Democrats.

Adding to pressure, Libya’s production should rebound to 1 million bpd in coming weeks, complicating efforts by other OPEC members and allies to restrict output.

Comments

Comments are closed.