AGL 5.60 Decreased By ▼ -0.18 (-3.11%)
ANL 8.90 Increased By ▲ 0.02 (0.23%)
AVN 76.85 Decreased By ▼ -2.07 (-2.62%)
BOP 5.26 Decreased By ▼ -0.02 (-0.38%)
CNERGY 4.63 Decreased By ▼ -0.07 (-1.49%)
EFERT 81.27 Decreased By ▼ -0.33 (-0.4%)
EPCL 50.08 Decreased By ▼ -0.83 (-1.63%)
FCCL 13.16 Decreased By ▼ -0.22 (-1.64%)
FFL 5.69 Decreased By ▼ -0.03 (-0.52%)
FLYNG 7.07 Decreased By ▼ -0.08 (-1.12%)
FNEL 4.79 Decreased By ▼ -0.03 (-0.62%)
GGGL 8.80 Decreased By ▼ -0.10 (-1.12%)
GGL 14.55 Decreased By ▼ -1.33 (-8.38%)
HUMNL 5.69 Decreased By ▼ -0.08 (-1.39%)
KEL 2.63 Decreased By ▼ -0.03 (-1.13%)
LOTCHEM 28.60 Decreased By ▼ -0.45 (-1.55%)
MLCF 24.49 Decreased By ▼ -0.61 (-2.43%)
OGDC 72.43 Decreased By ▼ -0.02 (-0.03%)
PAEL 15.36 Increased By ▲ 0.01 (0.07%)
PIBTL 5.00 Decreased By ▼ -0.05 (-0.99%)
PRL 16.10 Decreased By ▼ -0.19 (-1.17%)
SILK 1.08 Decreased By ▼ -0.01 (-0.92%)
TELE 9.14 Decreased By ▼ -0.23 (-2.45%)
TPL 7.23 Decreased By ▼ -0.10 (-1.36%)
TPLP 18.61 Decreased By ▼ -0.34 (-1.79%)
TREET 21.68 Decreased By ▼ -0.32 (-1.45%)
TRG 136.71 Decreased By ▼ -4.44 (-3.15%)
UNITY 16.88 Decreased By ▼ -0.14 (-0.82%)
WAVES 9.86 Decreased By ▼ -0.04 (-0.4%)
WTL 1.41 No Change ▼ 0.00 (0%)
BR100 4,225 Decreased By -29.6 (-0.7%)
BR30 15,518 Decreased By -214.7 (-1.36%)
KSE100 42,150 Decreased By -243.4 (-0.57%)
KSE30 15,588 Decreased By -75.7 (-0.48%)
Markets

Oil jumps on weather concerns in Gulf of Mexico

• Market braces for extra 1m bpd Iran supplies in H2 NEW YORK: Oil prices jumped 2% on Friday after three days of...
Published May 22, 2021
Follow us

• Market braces for extra 1m bpd Iran supplies in H2

NEW YORK: Oil prices jumped 2% on Friday after three days of losses, driven higher as a storm formed in the Gulf of Mexico, but were on track for a weekly fall as investors braced for the return of Iranian crude supplies after officials said Iran and world powers made progress a nuclear deal.

Brent crude futures rose $1.33, or 2%, to $66.36 a barrel by 1:06 p.m. ET (1606 GMT), while US West Texas Intermediate was at $63.54 a barrel, up $1.61, or 2.6%.

A weather system forming over the western Gulf of Mexico has a 40% chance of becoming a cyclone in the next 48 hours, the US National Hurricane Center (NHC) said on Friday.

"This early storm prompted traders to buy crude ahead of the weekend in anticipation of potential production shut-ins," said Phil Flynn, senior analyst at Price Futures Group in Chicago.

The gains were limited by the expectation that Iran could add a million or more barrels per day of oil production later this summer.

The two contracts are on track to fall about 3% on the week - their biggest loss since March - after Iran's president, Hassan Rouhani, said the United States was ready to lift sanctions on his country's oil, banking and shipping sectors.

US energy firms added oil and natural gas rigs for a fourth week in a row as higher oil prices prompt some drillers to return to the wellpad.

The oil and gas rig count, an early indicator of future output, rose two to 455 in the week to May 21, its highest since April 2020, energy services firm Baker Hughes Co said in its closely followed report on Friday.

Iran and world powers have been in talks since April on reviving the 2015 deal and the European Union official leading the discussions said on Wednesday he was confident a deal would be reached.

Still, investors remain upbeat about fuel demand recovery this summer as vaccination programs in Europe and the United States would allow more people to travel, although rising cases across parts of Asia are raising concerns.

Option bets on oil prices rising above $100 for the December 2021 Brent contract have jumped after last week's surprisingly strong US inflation data, with open interest on calls nearly tripling in May, JPMorgan analysts said. The bank's forecast is for Brent to end 2021 at $74.

To reach $100, demand would need to average above 102.6 million bpd in the third quarter and grow to 103.6 million bpd in the fourth quarter, JPMorgan said, in the absence of any additional OPEC+ supply response. It expects Iranian crude and condensate production to rise to 3.2 million barrels per day in December, from around 2.8 million bpd in the first quarter.

Barclays expects Brent and WTI oil prices to average $66 a barrel and $62 a barrel, respectively, this year. It cut demand estimates for the Emerging Markets Asia (ex-China) region, flagging the risk of further downside if the recent surge in infections persisted.

"Extended mobility restrictions in the region might slow the demand recovery somewhat, but seem unlikely to stall it for a sustained period, given largely positive results of vaccination programs worldwide," it said.

Comments

Comments are closed.

Oil jumps on weather concerns in Gulf of Mexico

Fawad says PTI ‘preparing for elections’ as Imran withdraws offer for talks

Tweets case: Quetta court approves Azam Swati’s five-day physical remand

Effective Nov 2022: Agri consumers of Discos, KE have to pay Rs23.30/unit

Provinces’ power sector schemes: Rs8.11bn approved by ECC

Opec+ likely to maintain oil output levels

Attack on diplomat: FO declines to confirm reports about suspect’s arrest

England set Pakistan 343-run target in first Test

PTI Sindh MPAs hand in their resignations

Pakistan ‘ever ready’ to take fight back to enemy: COAS responds strongly to India’s belligerence

IK says will dissolve assemblies ‘very soon’