ANL 12.63 Increased By ▲ 0.08 (0.64%)
ASC 12.21 Decreased By ▼ -0.09 (-0.73%)
ASL 13.02 Decreased By ▼ -0.26 (-1.96%)
BOP 8.56 Increased By ▲ 0.01 (0.12%)
BYCO 5.86 Decreased By ▼ -0.04 (-0.68%)
FCCL 17.50 Decreased By ▼ -0.02 (-0.11%)
FFBL 23.50 Decreased By ▼ -0.30 (-1.26%)
FFL 10.00 Decreased By ▼ -0.01 (-0.1%)
FNEL 9.23 No Change ▼ 0.00 (0%)
GGGL 14.51 Decreased By ▼ -0.23 (-1.56%)
GGL 26.22 Decreased By ▼ -0.14 (-0.53%)
HUMNL 5.76 Decreased By ▼ -0.09 (-1.54%)
JSCL 15.00 No Change ▼ 0.00 (0%)
KAPCO 31.50 Increased By ▲ 0.10 (0.32%)
KEL 3.32 No Change ▼ 0.00 (0%)
MDTL 2.08 Decreased By ▼ -0.02 (-0.95%)
MLCF 32.04 Decreased By ▼ -0.40 (-1.23%)
NETSOL 91.40 Decreased By ▼ -3.28 (-3.46%)
PACE 4.00 Decreased By ▼ -0.05 (-1.23%)
PAEL 21.30 Increased By ▲ 0.30 (1.43%)
PIBTL 7.40 Increased By ▲ 0.05 (0.68%)
POWER 6.29 Increased By ▲ 0.04 (0.64%)
PRL 12.20 Decreased By ▼ -0.09 (-0.73%)
PTC 8.60 Decreased By ▼ -0.02 (-0.23%)
SILK 1.18 Decreased By ▼ -0.01 (-0.84%)
SNGP 37.80 Decreased By ▼ -0.04 (-0.11%)
TELE 15.32 Decreased By ▼ -0.23 (-1.48%)
TRG 94.20 Increased By ▲ 0.49 (0.52%)
UNITY 22.35 Decreased By ▼ -0.63 (-2.74%)
WTL 2.03 Decreased By ▼ -0.04 (-1.93%)
BR100 4,486 Decreased By ▼ -1.2 (-0.03%)
BR30 17,727 Decreased By ▼ -53.7 (-0.3%)
KSE100 43,832 Decreased By ▼ -15.3 (-0.03%)
KSE30 17,042 Decreased By ▼ -7.9 (-0.05%)

Coronavirus
LOW
Source: covid.gov.pk
Pakistan Deaths
28,793
924hr
Pakistan Cases
1,287,703
31024hr
Sindh
477,119
Punjab
443,610
Balochistan
33,514
Islamabad
107,989
KPK
180,471

NEW YORK: Oil prices rose to a one-week high on Tuesday after a move by the United States and other consumer nations to release tens of millions of barrels of oil from reserves to try to cool the market fell short of some expectations.

The United States said on Tuesday it would release millions of barrels of oil from strategic reserves in coordination with China, India, South Korea, Japan and Britain, to try to cool prices after OPEC+ producers repeatedly ignored calls for more crude.

But analysts said the effect on prices was likely to be short-lived after years of declining investment and a strong global recovery from the COVID-19 pandemic.

Brent futures rose $1.83, or 2.3%, to $81.53 a barrel by 11:01 a.m. EST (1601 GMT), while US West Texas Intermediate (WTI) crude rose $1.35, or 1.8%, to $78.10.

That puts Brent on track for its highest close since Nov. 16 and pushed Brent's premium over WTI to its highest since mid-October.

Talk of a coordinated reserves release, a strong US dollar and a potential hit to energy demand from a fourth wave of COVID-19 cases in Europe has already caused Brent prices to drop over 10% since they hit a three-year high of $86.70 per barrel on Oct. 25.

US to release oil from reserves after OPEC+ rebuffs call for more crude

President Joe Biden's administration said it would release 50 million barrels from the US Strategic Petroleum Reserves (SPR), which will start hitting the market in mid to late December.

"The market is not impressed with the Biden Administration's announcement ... because the majority of the release is actually a loan to the market and the volume that is going to be sold was already approved by Congress as part of the deficit reduction legislation," said Andrew Lipow, president at Lipow Oil Associates.

The OPEC+ alliance between the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia has so far rebuffed repeated requests from Washington to pump more oil.

The United Arab Emirates Energy Minister Suhail Al-Mazrouei said on Tuesday the UAE saw "no logic" in increasing its own contributions to global markets at the moment, adding technical data gathered ahead of an upcoming OPEC+ meeting in December pointed to an oil surplus in the first quarter of 2022.

In addition to the front-month, the WTI forward curve for 2022 declined by almost 7% since hitting a recent high of $76.59 per barrel in late October in anticipation of more supply down the road.

"The tug of war between producers for higher prices and consumers for lower prices can only lead to a very volatile price environment in 2022," said Louise Dickson, senior oil markets analyst at Rystad Energy.

The dollar index, meanwhile, held near a 16-month high on Tuesday after Federal Reserve Chair Jerome Powell was picked for a second term, reinforcing market expectations that US interest rates will rise in 2022.

A stronger dollar makes oil more expensive for holders of other currencies, which traders said was weighing on crude prices.

We love hearing your feedback, please help us improve by answering these few survey questions

Comments

Comments are closed.