AVN 64.80 Increased By ▲ 0.63 (0.98%)
BAFL 30.90 Increased By ▲ 1.00 (3.34%)
BOP 4.73 Increased By ▲ 0.10 (2.16%)
CNERGY 3.87 Decreased By ▼ -0.02 (-0.51%)
DFML 13.44 Increased By ▲ 0.09 (0.67%)
DGKC 41.34 Increased By ▲ 0.49 (1.2%)
EPCL 46.23 Decreased By ▼ -0.77 (-1.64%)
FCCL 11.39 Increased By ▲ 0.39 (3.55%)
FFL 5.05 Decreased By ▼ -0.03 (-0.59%)
FLYNG 5.81 Increased By ▲ 0.04 (0.69%)
GGL 9.90 Increased By ▲ 0.15 (1.54%)
HUBC 64.06 Increased By ▲ 2.11 (3.41%)
HUMNL 5.67 Increased By ▲ 0.02 (0.35%)
KAPCO 27.83 Increased By ▲ 0.25 (0.91%)
KEL 2.13 Decreased By ▼ -0.02 (-0.93%)
LOTCHEM 24.35 Increased By ▲ 0.05 (0.21%)
MLCF 21.36 Increased By ▲ 0.64 (3.09%)
NETSOL 84.43 Increased By ▲ 1.33 (1.6%)
OGDC 87.80 Increased By ▲ 1.75 (2.03%)
PAEL 10.92 Increased By ▲ 0.12 (1.11%)
PIBTL 4.17 Increased By ▲ 0.03 (0.72%)
PPL 77.53 Increased By ▲ 1.34 (1.76%)
PRL 13.65 Decreased By ▼ -0.01 (-0.07%)
SILK 0.88 Decreased By ▼ -0.01 (-1.12%)
SNGP 41.75 Increased By ▲ 1.00 (2.45%)
TELE 5.89 Increased By ▲ 0.01 (0.17%)
TPLP 15.81 Increased By ▲ 0.16 (1.02%)
TRG 112.65 Increased By ▲ 2.55 (2.32%)
UNITY 13.97 Increased By ▲ 0.22 (1.6%)
WTL 1.14 Decreased By ▼ -0.01 (-0.87%)
BR100 4,048 Increased By 80.6 (2.03%)
BR30 14,467 Increased By 282.1 (1.99%)
KSE100 40,673 Increased By 801.8 (2.01%)
KSE30 15,190 Increased By 292.7 (1.96%)
Follow us

NEW YORK: Oil prices dropped more than 2% Wednesday after major global oil producers came to a compromise about supply and after US data showed demand slacked off a bit in the most recent week.

Crude prices have surged to highs not seen in nearly three years, but have been choppy lately on worries about a pickup in supply.

Brent crude settled down $1.73 a barrel, or 2.26%, at $74.76 a barrel. West Texas Intermediate was off by $2.12, or 2.82%, at $73.13 a barrel.

Brent crude’s premium to West Texas Intermediate futures widened to the most since July 6, according to Refinitiv Eikon data. The US benchmark fell more precipitously due to demand concerns.

Oil initially dropped after Reuters reported Saudi Arabia and the United Arab Emirates reached a compromise that should unlock an OPEC+ deal to boost global oil supplies as the world recovers from the coronavirus pandemic.

The benchmarks fell more after US government data showed implied gasoline demand declining considerably last week. While the US Energy Information Administration said crude stockpiles declined more than expected, in their eighth consecutive draw, the drawdown was overshadowed by lagging gasoline demand.

“The significant decline in gasoline and diesel demand has pressured prices, even though crude oil inventories have continued to draw,” said Andrew Lipow, president of Lipow Oil Associates in Houston. US fuel stocks were higher, even as refinery runs eased. Gasoline stocks rose by 1 million barrels, compared with expectations for a 1.8 million-barrel drop.

The Organization of the Petroleum Exporting Countries and its allies including Russia, known as OPEC+, had been at loggerheads over increasing supply due to demands from the United Arab Emirates that its contribution to supply cuts be calculated from a higher production level.

The agreement should now pave the way for OPEC+ members to extend a deal to curb output until the end of 2022, the sources added, although the UAE energy ministry said in a statement that no deal with OPEC+ on its baseline has been reached and deliberations were continuing.

Also adding to a potential supply glut is crude from Iran, said Bill Farren-Price, director at Enverus. For the market balance, two critical are the timing of a deal between Iran and Western powers, which could lead to increased oil exports, and supply coming from the US, he said.

“You expect Iran to come back at top strength, but the timing is a question.”

Comments

Comments are closed.

Oil slides over 2pc after top oil producers near compromise

Dar meets IMF review mission, apprises it of planned power sector reforms

After 29 successive losses, rupee sees some gain, settles at 267.89 against US dollar

US Fed starts policy meeting with smaller rate hike likely

We must put our house in order, says Asif after Peshawar mosque bombing

Corps commanders resolve to bring perpetrators of Peshawar attack to ‘exemplary justice’

Inflationary pressure expected to calm down gradually: Finance Division

KSE-100 jumps 800 points owing to optimism over IMF talks

Pakistan’s performance worsens, rank remains same in corruption perception index

Police foil terrorist attack on Mianwali police station

Barrick Gold makes first payment of $3mn to Balochistan govt