AIRLINK 72.70 Decreased By ▼ -2.46 (-3.27%)
BOP 5.37 Decreased By ▼ -0.08 (-1.47%)
CNERGY 4.33 Decreased By ▼ -0.06 (-1.37%)
DFML 28.70 Increased By ▲ 1.06 (3.84%)
DGKC 74.01 Increased By ▲ 2.01 (2.79%)
FCCL 20.40 Increased By ▲ 0.11 (0.54%)
FFBL 30.90 Decreased By ▼ -0.15 (-0.48%)
FFL 10.11 Increased By ▲ 0.14 (1.4%)
GGL 10.44 Increased By ▲ 0.17 (1.66%)
HBL 115.67 Increased By ▲ 0.67 (0.58%)
HUBC 131.85 Increased By ▲ 0.40 (0.3%)
HUMNL 6.77 Decreased By ▼ -0.10 (-1.46%)
KEL 4.05 Decreased By ▼ -0.15 (-3.57%)
KOSM 4.66 Decreased By ▼ -0.11 (-2.31%)
MLCF 38.50 Increased By ▲ 1.42 (3.83%)
OGDC 134.50 Decreased By ▼ -0.95 (-0.7%)
PAEL 23.90 Increased By ▲ 0.50 (2.14%)
PIAA 27.40 Increased By ▲ 0.09 (0.33%)
PIBTL 6.52 Decreased By ▼ -0.08 (-1.21%)
PPL 113.34 Increased By ▲ 0.18 (0.16%)
PRL 28.38 Decreased By ▼ -0.37 (-1.29%)
PTC 15.09 Decreased By ▼ -0.41 (-2.65%)
SEARL 56.70 Decreased By ▼ -0.63 (-1.1%)
SNGP 65.75 Decreased By ▼ -1.24 (-1.85%)
SSGC 11.00 Decreased By ▼ -0.17 (-1.52%)
TELE 9.07 Decreased By ▼ -0.07 (-0.77%)
TPLP 11.90 Decreased By ▼ -0.15 (-1.24%)
TRG 69.60 Decreased By ▼ -0.79 (-1.12%)
UNITY 23.65 No Change ▼ 0.00 (0%)
WTL 1.34 No Change ▼ 0.00 (0%)
BR100 7,451 Decreased By -4.4 (-0.06%)
BR30 24,298 Increased By 47.5 (0.2%)
KSE100 71,455 Increased By 21.6 (0.03%)
KSE30 23,594 Increased By 28 (0.12%)
Markets

Oil rises to $69 as focus returns to tighter market

  • Saudi Arabia says it thwarted missile and drone attacks.
  • OPEC+ offers boost by deciding to keep supply steady.
  • US crude inventories expected to fall in weekly reports.
Published March 9, 2021

LONDON: Oil rose to $69 a barrel on Tuesday as investors focused on prospects for tighter supply due to extended OPEC+ output curbs and amid growing hopes of a recovery in demand.

Crude hit its highest since the start of the pandemic on Monday after Yemen's Houthi forces fired drones and missiles at Saudi oil sites on Sunday. Saudi Arabia said it thwarted the strike and prices slipped as supply fears eased.

Brent crude was up 89 cents, or 1.3%, at $69.13 by 1200 GMT, after trading as low as $67.61. It reached to $71.38 on Monday, its highest since Jan. 8, 2020.

US West Texas Intermediate (WTI) added 82 cents to $65.87, after hitting its highest since October 2018 on Monday.

"Dips have been lately viewed as buying opportunities," said Tamas Varga of broker PVM. "Last week's OPEC+ meeting will ensure that the global oil balance will get tighter in the foreseeable future."

The Organization of the Petroleum Exporting Countries (OPEC), Russia and allies, known as OPEC+, decided on Thursday to broadly stick to output cuts, fuelling a rally.

"With a structural undersupply in the physical market now, any dips in oil prices are likely to attract physical buyers' attention," said Jeffrey Halley of broker OANDA.

Prices also rose on expectations of economic recovery after the US Senate approved a $1.9 trillion stimulus package, outweighing a stronger US dollar, which tends to crimp investor demand for commodities.

US Treasury Secretary Janet Yellen said on Monday the aid package would provide enough resources to fuel a "very strong" US economic recovery. The US House of Representatives must still approve it.

In another development that would support prices, US crude stockpiles are expected to drop. The first of this week's reports, from the American Petroleum Institute, is out at 2130 GMT.

Comments

Comments are closed.