AVN 68.10 Increased By ▲ 0.35 (0.52%)
BAFL 31.10 Increased By ▲ 0.12 (0.39%)
BOP 4.88 Increased By ▲ 0.07 (1.46%)
CNERGY 3.88 Increased By ▲ 0.12 (3.19%)
DFML 14.10 Increased By ▲ 0.12 (0.86%)
DGKC 42.75 Increased By ▲ 1.75 (4.27%)
EPCL 47.64 Increased By ▲ 0.59 (1.25%)
FCCL 12.07 Increased By ▲ 0.42 (3.61%)
FFL 5.44 Increased By ▲ 0.28 (5.43%)
FLYNG 6.20 Increased By ▲ 0.26 (4.38%)
GGL 11.20 Decreased By ▼ -0.09 (-0.8%)
HUBC 67.84 Decreased By ▼ -0.11 (-0.16%)
HUMNL 5.77 Increased By ▲ 0.07 (1.23%)
KAPCO 28.03 Decreased By ▼ -0.01 (-0.04%)
KEL 2.32 Increased By ▲ 0.05 (2.2%)
LOTCHEM 26.70 Increased By ▲ 0.50 (1.91%)
MLCF 22.74 Increased By ▲ 1.08 (4.99%)
NETSOL 87.04 Increased By ▲ 0.59 (0.68%)
OGDC 101.10 Increased By ▲ 0.61 (0.61%)
PAEL 11.44 Increased By ▲ 0.29 (2.6%)
PIBTL 4.30 Increased By ▲ 0.06 (1.42%)
PPL 81.13 Increased By ▲ 0.53 (0.66%)
PRL 13.58 Increased By ▲ 0.35 (2.65%)
SILK 0.92 Increased By ▲ 0.01 (1.1%)
SNGP 44.30 Increased By ▲ 0.40 (0.91%)
TELE 6.20 Increased By ▲ 0.13 (2.14%)
TPLP 16.10 Increased By ▲ 0.25 (1.58%)
TRG 122.60 Increased By ▲ 1.02 (0.84%)
UNITY 14.20 Increased By ▲ 0.20 (1.43%)
WTL 1.34 Increased By ▲ 0.02 (1.52%)
BR100 4,229 Increased By 47.9 (1.15%)
BR30 15,420 Increased By 150.3 (0.98%)
KSE100 42,162 Increased By 438.9 (1.05%)
KSE30 15,900 Increased By 154.5 (0.98%)
Follow us

NEW YORK: Oil prices fell more than 1% on Monday as fears that Chinese oil crude consumption is slowing and that OPEC may increase global supply following a meeting this week. Brent crude settled at $63.69 a barrel, falling 73 cents, or 1.1%, and US West Texas Intermediate (WTI) crude settled at $60.64 a barrel, losing 86 cents, or 1.4%.

China’s factory activity growth slipped to a nine-month low in February, sounding alarms over Chinese crude buying and pressuring oil prices.

“There’s some talk that their strategic reserves are filled up, and so some people are betting against the Chinese continuing to drive oil prices,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.

Investors were also concerned that the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, would soon increase oil output.

“The worry is that that’s going to end up adding as much as 1.5 million barrels to the market,” said Bob Yawger, director of energy futures at Mizuho. “They have to construct some kind of story to bring those barrels back.”

OPEC oil output fell in February as a voluntary cut by Saudi Arabia added to agreed reductions under a pact with allies, a Reuters survey found, ending a run of seven consecutive monthly increases.

The group meets on Thursday and could discuss allowing as much as 1.5 million barrels per day of crude back into the market.

ING analysts said OPEC+ needs to avoid surprising traders by releasing too much supply.

“There is a large amount of speculative money in oil at the moment, so they will want to avoid any action that will see (those investors) running for the exit,” the analysts said.

A stronger US dollar, which typically moves inversely with oil, also weighed on oil.

Rising COVID-19 vaccinations stirring up economic activity along with a $1.9 trillion coronavirus-related relief package passed by the US House of Representatives on Saturday kept prices from sinking lower.

Oil prices rose earlier in the session on hopes tied to the proposed US stimulus package would pay for vaccines and medical supplies, and send a new round of emergency financial aid to households and small businesses, which will have a direct impact on energy demand. The approval of Johnson & Johnson’s COVID-19 shot also buoyed the economic outlook.

Comments

Comments are closed.

Oil down over 1pc

Intra-day update: rupee maintains momentum against US dollar

IMF talks: ‘Some understanding’ reached: MoS Pasha

Intra-day update: Bullish run at PSX, KSE-100 up over 500 points

Qatar agrees to buy OGDCL, PPL shares

PM forms body to activate STZA

Primary deficit: Rs500bn waiver sought from IMF

First six months: Fiscal deficit swells to 2pc of GDP

Petrol shortage hits major cities of Punjab

New landfill sites: Govt decides to alter ICT master plan

Joint sitting of parliament: Rabbani deplores non-inclusion of terror issue in agenda