AGL 5.75 Increased By ▲ 0.05 (0.88%)
ANL 8.85 Decreased By ▼ -0.25 (-2.75%)
AVN 79.50 Increased By ▲ 0.34 (0.43%)
BOP 5.17 Decreased By ▼ -0.04 (-0.77%)
CNERGY 4.69 Decreased By ▼ -0.04 (-0.85%)
EFERT 81.10 Decreased By ▼ -0.01 (-0.01%)
EPCL 50.99 Increased By ▲ 0.24 (0.47%)
FCCL 13.49 Decreased By ▼ -0.03 (-0.22%)
FFL 5.81 Increased By ▲ 0.05 (0.87%)
FLYNG 7.21 Decreased By ▼ -0.08 (-1.1%)
FNEL 4.80 Decreased By ▼ -0.04 (-0.83%)
GGGL 8.70 Decreased By ▼ -0.19 (-2.14%)
GGL 15.75 Decreased By ▼ -0.05 (-0.32%)
HUMNL 5.85 Increased By ▲ 0.02 (0.34%)
KEL 2.58 Decreased By ▼ -0.01 (-0.39%)
LOTCHEM 29.50 Decreased By ▼ -0.30 (-1.01%)
MLCF 25.30 Increased By ▲ 0.15 (0.6%)
OGDC 72.45 Decreased By ▼ -0.25 (-0.34%)
PAEL 15.40 Decreased By ▼ -0.07 (-0.45%)
PIBTL 5.15 Increased By ▲ 0.02 (0.39%)
PRL 16.25 Decreased By ▼ -0.25 (-1.52%)
SILK 1.07 Decreased By ▼ -0.03 (-2.73%)
TELE 9.30 Decreased By ▼ -0.25 (-2.62%)
TPL 7.35 Increased By ▲ 0.02 (0.27%)
TPLP 19.16 Decreased By ▼ -0.10 (-0.52%)
TREET 21.85 Increased By ▲ 0.01 (0.05%)
TRG 142.80 Decreased By ▼ -1.30 (-0.9%)
UNITY 17.20 Decreased By ▼ -0.32 (-1.83%)
WAVES 10.03 Increased By ▲ 0.03 (0.3%)
WTL 1.38 Increased By ▲ 0.01 (0.73%)
BR100 4,248 Decreased By -10.3 (-0.24%)
BR30 15,761 Decreased By -79.9 (-0.5%)
KSE100 42,359 Decreased By -14.9 (-0.04%)
KSE30 15,627 Decreased By -38.6 (-0.25%)
Markets

Oil rises 2pc as U.S. inventories fall and demand picks up

  • U.S. oil and gas drillers are gearing up for a pick-up in demand. As higher prices make new wells profitable again, they added rigs for a sixth month in a row in January.
Published February 1, 2021
Follow us

NEW YORK: Oil prices rose more than 2pc on Monday, buoyed by falling U.S. crude inventories and rising winter fuel demand as a one of the worst snowstorms in years hits the U.S. Northeast.

Brent crude was up $1.22 cents, or 2.2pc, at $56.26 a barrel by 1:26 p.m. EST (1826 GMT). U.S. crude gained $1.20 cents, or 2.3pc, to $53.40. Both benchmarks gained nearly 8pc in January.

U.S. government data last week showed a 2.3 million-barrel drawdown in stocks at the Cushing, Oklahoma, delivery hub for crude futures. Another 2.3 million-barrel weekly decline is expected since then, analysts and traders said citing a Wood Mackenzie report.

"Crude is being supported by many small factors this week - expected drawdowns in Cushing, a sudden rise in winter fuel demand amid colder weather, and further talks on Capitol Hill about stimulus checks," said John Kilduff, partner at Again Capital LLC in New York.

The U.S. Northeast has been hit by a powerful winter snow storm, pummeling a vast swath stretching from Pennsylvania through New England, causing widespread disruption in New York City and other major urban centers in the region.

Goldman Sachs said prices could rise to $65 by July, forecasting an oil market deficit of 900,000 barrels per day (bpd) in the first half of 2021, a higher level than its previous prediction of 500,000 bpd.

OPEC oil output rose for a seventh month in January, a Reuters survey found, after the group and its allies agreed to ease supply curbs further, although the production growth was smaller than expected.

Russian oil and gas condensate production also increased in January, two sources told Reuters on Monday, but the increase was in line with expectations, following Moscow's deal with OPEC on output cuts.

U.S. oil and gas drillers are gearing up for a pick-up in demand. As higher prices make new wells profitable again, they added rigs for a sixth month in a row in January.

U.S. production data from the Energy Information Administration showed output rose above 11 million bpd in November, the first time it has exceeded that figure since April.

Comments

Comments are closed.

Oil rises 2pc as U.S. inventories fall and demand picks up

Intra-day update: rupee records marginal loss against US dollar

Punjab local government election to be held in April: ECP

Islamic banking crucial aspect of Pakistan's financial sector: SBP governor

Azam Nazeer Tarar takes charge as law minister again

PM tells Jefferies Group team: Steps taken to stabilise economy

ECC approves Kissan Package: Power tariff for tubewells reduced to Rs13 per unit

Former China leader Jiang Zemin dead: state media

Sri Lanka’s debt to China close to 20% of public external debt

OPEC+ decision to hold virtual meeting signals little likelihood of policy change

Stomach bug sweeps through England camp on eve of Pakistan Test