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%)
Follow us

NEW YORK: Oil prices fell about $1 a barrel on Wednesday in another seesaw trading session, as investors feared this week’s collapse in OPEC+ talks could mean more supply, not less, is on the way.

Crude markets have been volatile over the last two days following the breakdown of discussions between major oil producers Saudi Arabia and United Arab Emirates, signalling investors are unclear on what the OPEC+ standoff means for worldwide production.

Brent crude was down 98 cents, or 1.3%, at $73.55 a barrel by 12:52 p.m. EDT (1652 GMT). US West Texas Intermediate shed $1.09, or 1.5%, to $72.28. Earlier, both benchmarks had jumped $1 a barrel, similar to Tuesday’s action.

The Organization of the Petroleum Exporting Countries and its allies including Russia, known as OPEC+, have restrained supply for more than a year since demand crashed during the coronavirus pandemic.

The group is still maintaining nearly 6 million bpd of output cuts. It was expected to add to supply, but three days of meetings failed to close divisions between the Saudis and the Emiratis.

For now, that means the existing agreement - which keeps supply restrained more - remains in force. But the breakdown also could lead producers, eager to capitalize on the rebound in demand, to start supplying more oil.

“There’s a growing sense that the OPEC disarray isn’t necessarily bullish for prices after all because the real risk is the whole thing falls apart, becomes a free for all, and a lot more oil potentially gets put on the market,” said John Kilduff, partner at Again Capital in New York.

Russia is now leading efforts to close divisions between the Saudis and UAE to help strike a deal to raise oil output in coming months, three OPEC+ sources said.

Saudi Energy Minister Prince Abdulaziz bin Salman dampened concerns of a price war in an interview with CNBC on Tuesday.

Oil prices were also pressured by a rally in the US dollar, which typically moves inversely with crude prices, Kilduff said.

The first of this week’s two reports on US inventories, from the American Petroleum Institute, is out at 4:30 p.m. EDT (2030 GMT). Analysts expect crude stocks to fall by 3.9 million barrels.

Comments

Comments are closed.

Oil falls in volatile trade as investors try to make sense of OPEC spat

PM terms IK’s remarks ‘undemocratic’

Sindh will rise again against ‘the tyrant’: IK

FBR set to fix minimum value for sugar supply

JPL seeks exemption from IFRS-9

Govt urges Turkiye to expedite TGA

Pakistani embassy in Kabul: IS-KP claims responsibility for attack

‘We must act resolutely to defeat the menace’: FO

Wheat quota of three flour mills suspended

Six coal miners killed in gas explosion in Harnai

Police granted 5-day remand of Swati