ANL 35.65 Increased By ▲ 1.33 (3.88%)
ASC 14.80 Decreased By ▼ -0.05 (-0.34%)
ASL 24.85 Increased By ▲ 0.35 (1.43%)
AVN 91.25 Increased By ▲ 1.01 (1.12%)
BOP 7.79 No Change ▼ 0.00 (0%)
BYCO 10.15 Increased By ▲ 0.10 (1%)
DGKC 124.25 Increased By ▲ 0.05 (0.04%)
EPCL 56.50 Increased By ▲ 0.20 (0.36%)
FCCL 24.16 Decreased By ▼ -0.15 (-0.62%)
FFBL 28.80 Increased By ▲ 1.20 (4.35%)
FFL 16.10 Increased By ▲ 0.05 (0.31%)
HASCOL 9.72 Decreased By ▼ -0.02 (-0.21%)
HUBC 79.25 Decreased By ▼ -0.75 (-0.94%)
HUMNL 6.63 Increased By ▲ 0.19 (2.95%)
JSCL 20.70 Increased By ▲ 0.20 (0.98%)
KAPCO 40.25 Increased By ▲ 0.04 (0.1%)
KEL 3.81 Decreased By ▼ -0.04 (-1.04%)
LOTCHEM 16.20 Decreased By ▼ -0.05 (-0.31%)
MLCF 46.49 Decreased By ▼ -0.11 (-0.24%)
PAEL 35.24 Increased By ▲ 0.14 (0.4%)
PIBTL 10.35 Increased By ▲ 0.02 (0.19%)
POWER 9.17 Decreased By ▼ -0.08 (-0.86%)
PPL 85.35 Decreased By ▼ -0.15 (-0.18%)
PRL 25.00 Decreased By ▼ -0.01 (-0.04%)
PTC 9.72 Increased By ▲ 0.17 (1.78%)
SILK 1.24 No Change ▼ 0.00 (0%)
SNGP 40.50 Increased By ▲ 1.68 (4.33%)
TRG 162.90 Decreased By ▼ -4.50 (-2.69%)
UNITY 31.05 Increased By ▲ 0.40 (1.31%)
WTL 1.42 Decreased By ▼ -0.11 (-7.19%)
BR100 4,836 Increased By ▲ 15.71 (0.33%)
BR30 25,635 Decreased By ▼ -33.99 (-0.13%)
KSE100 45,049 Increased By ▲ 70.52 (0.16%)
KSE30 18,436 Decreased By ▼ -6.45 (-0.03%)

Coronavirus
VERY HIGH
Pakistan Deaths
15,619
11824hr
Pakistan Cases
729,920
431824hr
Sindh
269,474
Punjab
252,974
Balochistan
20,397
Islamabad
66,983
KPK
100,275
Markets

Oil rebounds on robust economic data, bargain hunting

  • Oil slumps over 4% in previous session on rising OPEC+ supply.
  • Strong US, China economic data support investor sentiment.
  • US expects 'difficult' Iran talks, sees no quick breakthrough.
06 Apr 2021

SINGAPORE: Oil prices rose on Tuesday as investors looked for bargains following the previous day's plunge of more than 4% on rising output from OPEC+ while strong economic data from the United States and China brightened recovery prospects.

Brent crude futures rose 38 cents, or 0.61%, to $62.53 a barrel at 0507 GMT, after falling 4.2% on Monday.

US West Texas Intermediate (WTI) crude futures rose 34 cents, or 0.58%, to $58.99 barrel, after sliding 4.6% on Monday.

Market sentiment was buoyed by a survey from the Institute for Supply Management (ISM) on Monday showing activity in the US services industry reached its highest level on record in March. The data came after a jobs report on Friday beat forecasts with 916,000 added to the US economy last month.

The US data "underscored growth momentum in the world's largest economy, brightening the energy demand outlook," said DailyFX strategist Margaret Yang.

Adding to positive sentiment, a recovery in China's services sector picked up speed in March as firms hired more workers and business optimism surged, a private sector survey showed on Tuesday.

In addition, England is set to ease coronavirus pandemic restrictions on April 12, with the opening of businesses including all shops, gyms, hair salons and outdoor hospitality areas.

Those helped offset worries about the agreement last week by the Organization of the Petroleum Exporting Countries (OPEC) and allies, known as OPEC+, to bring back 350,000 barrels per day (bpd) of supply in May, another 350,000 bpd in June and a further 400,000 bpd or so in July.

Saudi Arabia is also set to phase out its extra voluntary cut of 1 million bpd over those three months. At the same time OPEC member Iran, exempt from making voluntary cuts, is boosting supply.

The market's attention is now on indirect talks between the United States and Iran in Vienna from Tuesday as part of broader negotiations to revive the 2015 nuclear deal between Tehran and global powers.

The US expected the talks to be "difficult" and does not foresee any early breakthrough.

"A breakthrough in the US-Iran indirect talks in Vienna this week will almost certainly lead to another decisive move lower by oil markets, as fears of more Iranian supply increase," said Jeffrey Halley, a senior Asia Pacific market analyst at OANDA.