AVN 63.94 Decreased By ▼ -1.02 (-1.57%)
BAFL 29.95 Decreased By ▼ -0.30 (-0.99%)
BOP 4.64 No Change ▼ 0.00 (0%)
CNERGY 3.88 No Change ▼ 0.00 (0%)
DFML 13.40 Decreased By ▼ -0.15 (-1.11%)
DGKC 40.64 Decreased By ▼ -1.56 (-3.7%)
EPCL 47.01 Increased By ▲ 1.20 (2.62%)
FCCL 10.99 Decreased By ▼ -0.42 (-3.68%)
FFL 5.05 Decreased By ▼ -0.12 (-2.32%)
FLYNG 5.76 Decreased By ▼ -0.04 (-0.69%)
GGL 9.78 Decreased By ▼ -0.26 (-2.59%)
HUBC 61.85 Decreased By ▼ -1.45 (-2.29%)
HUMNL 5.66 Decreased By ▼ -0.09 (-1.57%)
KAPCO 27.52 Decreased By ▼ -0.31 (-1.11%)
KEL 2.14 Increased By ▲ 0.01 (0.47%)
LOTCHEM 24.23 Decreased By ▼ -1.10 (-4.34%)
MLCF 20.78 Decreased By ▼ -0.79 (-3.66%)
NETSOL 83.19 Decreased By ▼ -1.80 (-2.12%)
OGDC 86.27 Increased By ▲ 0.04 (0.05%)
PAEL 10.78 Decreased By ▼ -0.14 (-1.28%)
PIBTL 4.11 Decreased By ▼ -0.12 (-2.84%)
PPL 76.26 Decreased By ▼ -2.26 (-2.88%)
PRL 13.66 Increased By ▲ 0.04 (0.29%)
SILK 0.88 Decreased By ▼ -0.01 (-1.12%)
SNGP 40.86 No Change ▼ 0.00 (0%)
TELE 5.87 Decreased By ▼ -0.13 (-2.17%)
TPLP 15.61 Decreased By ▼ -0.39 (-2.44%)
TRG 109.97 Decreased By ▼ -1.73 (-1.55%)
UNITY 13.80 Decreased By ▼ -0.19 (-1.36%)
WTL 1.14 Increased By ▲ 0.01 (0.88%)
BR100 3,967 Decreased By -58.9 (-1.46%)
BR30 14,185 Decreased By -217.7 (-1.51%)
KSE100 39,871 Decreased By -579.3 (-1.43%)
KSE30 14,898 Decreased By -212.2 (-1.4%)
Follow us

NEW YORK: Oil prices fell more than 6 percent on Tuesday, tumbling as concerns over new pandemic curbs and slow vaccine rollouts in Europe compounded additional crude volumes.

Brent crude futures were down $3.70, or 5.7%, at $60.94 a barrel by 2:13 p.m. ET (1816 GMT), having hit a low of $60.50 a barrel. West Texas Intermediate crude (WTI) was down $3.62, or 5.8%, at $57.94, after falling to as low as $57.32.

Both benchmarks traded near lows not seen since Feb. 9.

The front-month Brent spread flipped into a small contango for the first time since January. Contango is where the front-month contracts are cheaper than future months, and could encourage traders to put oil into storage.

“The road to oil demand recovery appears to be full of obstacles as the world continues to fight the COVID-19 pandemic,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy. “Oil prices are declining again on Tuesday, proving that last week’s correction was not deep enough and that the market had been trading lately with an excessively bullish sentiment, overlooking the pandemic’s risk.”

Extended lockdowns in Europe are being driven by the threat of a third wave, with a new variant of the coronavirus on the continent.

Germany, Europe’s biggest oil consumer, is extending its lockdown until April 18.

Nearly a third of France entered a month-long lockdown on Saturday following a jump in cases in Paris and parts of northern France.

“The German situation kicked it off, but there’s a lot of crude oil out there,” said Bob Yawger, director of energy futures at Mizuho in New York. “There is no flipside to the oil inventories. We are awash in oil.”

US crude inventories from the Energy Information Administration are due to be released Wednesday. The data is expected to show a slight draw in the latest week, but gasoline stockpiles are expected to rise, according to analysts in a Reuters poll.

A stronger US dollar also weighed on prices. As oil in priced in US dollars, a stronger greenback makes oil more expensive for holders of other currencies.

Physical crude markets are indicating that demand is lower, much more so than the futures market.

“Physical prices have been weaker than futures have been suggesting for several weeks now,” said Lachlan Shaw, head of commodity research at National Australia Bank.

Comments

Comments are closed.

Oil plunges over 6pc on concerns over Europe curbs, rollouts

Talks with IMF team: Doubts exist about Dar-led team’s capability

UAE president’s visit cancelled due to ‘inclement weather’

Alvi approves SOEs (Governance and Operations) Bill, 2022

Crucial IMF talks begin today

SBP issues mechanism for quota-based sugar export

SBP says curbing inflation critical to achieving growth

All-risk insurance of Guddu plant: MoC asks NICL to comply with PMO’s directives

Getting Daharki Power shares: ECC allows FF $2.9m equity investment

Revised RFP: AEDB seeks approval from Nepra

LCs: steel sector says facing dire situation