AGL 6.83 Increased By ▲ 0.03 (0.44%)
ANL 9.37 Decreased By ▼ -0.03 (-0.32%)
AVN 77.75 Decreased By ▼ -0.37 (-0.47%)
BOP 5.42 Increased By ▲ 0.02 (0.37%)
CNERGY 4.96 Increased By ▲ 0.11 (2.27%)
EFERT 77.90 Decreased By ▼ -0.10 (-0.13%)
EPCL 55.76 Decreased By ▼ -0.04 (-0.07%)
FCCL 15.30 Increased By ▲ 0.11 (0.72%)
FFL 6.37 Increased By ▲ 0.05 (0.79%)
FLYNG 8.19 Increased By ▲ 1.09 (15.35%)
GGGL 10.32 Decreased By ▼ -0.03 (-0.29%)
GGL 16.65 Increased By ▲ 0.34 (2.08%)
GTECH 9.19 Increased By ▲ 1.01 (12.35%)
HUMNL 6.36 Decreased By ▼ -0.03 (-0.47%)
KEL 2.94 Increased By ▲ 0.02 (0.68%)
LOTCHEM 28.90 Decreased By ▼ -0.05 (-0.17%)
MLCF 27.80 Increased By ▲ 0.35 (1.28%)
OGDC 74.60 Decreased By ▼ -0.60 (-0.8%)
PAEL 16.01 Increased By ▲ 0.06 (0.38%)
PIBTL 5.54 Decreased By ▼ -0.01 (-0.18%)
PRL 16.92 Increased By ▲ 0.01 (0.06%)
SILK 1.11 Increased By ▲ 0.04 (3.74%)
TELE 10.97 Increased By ▲ 0.27 (2.52%)
TPL 8.01 Increased By ▲ 0.04 (0.5%)
TPLP 20.95 Increased By ▲ 0.12 (0.58%)
TREET 23.25 Increased By ▲ 0.25 (1.09%)
TRG 134.60 Increased By ▲ 5.90 (4.58%)
UNITY 23.49 Increased By ▲ 0.14 (0.6%)
WAVES 11.50 Decreased By ▼ -0.04 (-0.35%)
WTL 1.67 Increased By ▲ 0.56 (50.45%)
BR100 4,150 Increased By 36.9 (0.9%)
BR30 15,830 Increased By 234.9 (1.51%)
KSE100 41,350 Increased By 138.7 (0.34%)
KSE30 15,478 Increased By 67.5 (0.44%)
Markets

Oil prices rise on economic outlook, drawdown in fuel stocks

  • US crude stocks surge, fuel inventories fall – EIA.
  • Biden's $1.9 trillion COVID-19 bill wins final approval in House.
  • Global oil stocks rise as market recovery hits speed bump.
Published March 11, 2021
Follow us

LONDON: Oil prices rose on Thursday on a weaker dollar as fears of rising US inflation eased while a steep fall in US fuel stocks meant a crude glut would be short-lived as refiners restart in Texas.

Brent crude oil futures for May rose 88 cents, or 1.3%, to $68.78 a barrel by 1248 GMT, while US West Texas Intermediate crude for April was up 78 cents, or 1.21%, at $65.22. Both contracts had risen by more than $1 a barrel in earlier trade.

"Fears of inflation are receding as the February US CPI was at 1.7%. Consequently, bond yields fell and equities stabilized with the Dow hitting an all-time high. The dollar, therefore, is weakening, which helps oil," Tamas Varga, senior analyst at PVM Oil Associates, said.

US Treasury yields fell on Thursday as concern about a strong pick-up in inflation eased and focus turned to an auction of 30-year government debt. The dollar is at its lowest level in a week.

Varga added that the massive draw on US gasoline stocks has also helped to boost oil prices.

"(It) implies that refiners' crude intake will keep growing, reversing the recent stock builds we have seen in the last three weeks due to Winter Storm Uri."

US gasoline stocks fell by 11.9 million barrels in the week to March 5 to 231.6 million barrels, the Energy Information Administration (EIA) said, compared with expectations for a 3.5 million-barrel drop.?

Crude inventories, however, rose by 13.8 million barrels in the week to March 5 to 498.4 million barrels, compared with analysts' expectations in a Reuters poll for an 816,000-barrel rise, as the nation's oil industry continued to feel the effects of a winter storm mid-February that stalled refining and forced production shut-ins in Texas.

Globally, stocks also remain ample with crude oil in storage at major land and sea hubs rising last week, according to analysts and ship trackers.

As the pace of inoculations picks up, several states such as North Carolina and California have moved to relax COVID-19 restrictions.

Meanwhile, the US House of Representatives gave final approval on Wednesday to one of the largest economic stimulus measures in American history, a sweeping $1.9 trillion COVID-19 relief bill that gives President Joe Biden his first major victory in office.

Comments

Comments are closed.