BAFL 53.19 Increased By ▲ 3.16 (6.32%)
BIPL 22.90 Increased By ▲ 0.49 (2.19%)
BOP 5.67 Increased By ▲ 0.25 (4.61%)
CNERGY 5.12 Increased By ▲ 0.07 (1.39%)
DFML 19.35 Increased By ▲ 0.17 (0.89%)
DGKC 80.54 Increased By ▲ 0.39 (0.49%)
FABL 33.11 Increased By ▲ 0.26 (0.79%)
FCCL 20.25 No Change ▼ 0.00 (0%)
FFL 10.48 Increased By ▲ 0.83 (8.6%)
GGL 13.61 Increased By ▲ 0.01 (0.07%)
HBL 129.52 Increased By ▲ 8.18 (6.74%)
HUBC 123.38 Increased By ▲ 0.88 (0.72%)
HUMNL 8.04 Increased By ▲ 0.04 (0.5%)
KEL 4.43 Increased By ▲ 0.46 (11.59%)
LOTCHEM 28.01 Decreased By ▼ -0.07 (-0.25%)
MLCF 42.71 Increased By ▲ 0.51 (1.21%)
OGDC 125.38 Increased By ▲ 4.05 (3.34%)
PAEL 21.33 Increased By ▲ 1.10 (5.44%)
PIBTL 6.11 Increased By ▲ 0.31 (5.34%)
PIOC 118.47 Increased By ▲ 2.57 (2.22%)
PPL 113.85 Increased By ▲ 3.10 (2.8%)
PRL 31.80 Increased By ▲ 2.22 (7.51%)
SILK 1.10 Increased By ▲ 0.02 (1.85%)
SNGP 69.44 Increased By ▲ 0.41 (0.59%)
SSGC 13.76 Increased By ▲ 0.06 (0.44%)
TELE 9.16 Increased By ▲ 0.41 (4.69%)
TPLP 14.79 Increased By ▲ 0.12 (0.82%)
TRG 92.45 Increased By ▲ 1.15 (1.26%)
UNITY 27.47 Increased By ▲ 0.22 (0.81%)
WTL 1.67 Increased By ▲ 0.04 (2.45%)
BR100 6,815 Increased By 167.1 (2.51%)
BR30 24,245 Increased By 677 (2.87%)
KSE100 66,224 Increased By 1505.6 (2.33%)
KSE30 22,123 Increased By 529.1 (2.45%)
Markets

Oil prices accelerate rise as OPEC+ calls off output talks

  • The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, agreed on record output cuts in 2020 to cope with a COVID-induced price crash.
Published July 5, 2021

LONDON: Oil prices rose on Monday, driven higher after OPEC+ nations called off talks on output levels, meaning no deal to boost production has been agreed.

Brent was up 94 cents, or 1.2pc, at $77.11 a barrel by 1652 GMT, trading around 2-1/2 year highs. U.S. oil gained $1.11, or 1.5pc, to $76.27 a barrel.

OPEC+ ministers abandoned the talks and set no new date to resume them, after clashing last week when the United Arab Emirates rebuffed a proposed eight-month extension to output curbs.

The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, agreed on record output cuts in 2020 to cope with a COVID-induced price crash.

The producers have been gradually easing the output restrictions, but a plan on Friday to lift output by about 2 million barrels per day (bpd) from August to December 2021 and to extend the pact on a series of gradual output shifts to the end of 2022 was blocked by the UAE.

The prospect of OPEC+ not adding the extra barrels to the market next month boosted prices, but also added volatility, said Rystad Energy oil markets analyst Louise Dickson, noting that prices briefly turned negative.

"The fact that the meeting got postponed today and the time it took for this to be announced shows that there are some negotiations on the sidelines," she said.

ING Economics said OPEC+'s failure to come to a deal may provide some brief upside to oil prices but said "it could also signal the beginning of the end for the broader deal, and so the risk that members start to increase output."

Thin trading on a U.S. holiday to mark Independence Day added to volatility, and prices could move sideways in the near term on "buyer fatigue" after a long bullish trend, said RBN Energy senior analyst Martin King.

Prince Abdulaziz bin Salman, energy minister of Saudi Arabia, the biggest oil exporter in OPEC, called on Sunday for "compromise and rationality" to secure a deal.

The standoff coincides with uncertainty about the course of the pandemic and concerns about the spread of the Delta variant of the coronavirus.

But positive European economic data offered some support. Euro zone businesses expanded activity at the fastest rate in 15 years in June as easing coronavirus restrictions revived the service industry, a survey showed on Monday.

Comments

Comments are closed.

Oil prices accelerate rise as OPEC+ calls off output talks

Israel strikes Gaza after failed UN ceasefire bid

$100 billion export vision: Pakistan eyes to reduce trade deficit with China

Nawaz stresses on improving relations with India, other neigbours

Gold price per tola falls Rs3,000 in Pakistan

Sarah Inam murder case: Verdict to be announced on December 14

Iran says reviving nuclear deal 'useless'

COP28 president says summit 'making progress, but not fast enough'

OPEC members push against including fossil fuels phase-out in COP28 deal

Turkiye's Erdogan denounces UN 'Israel protection council'

Sydney bakes in hottest day in three years