AGL 6.79 Decreased By ▼ -0.01 (-0.15%)
ANL 9.43 Increased By ▲ 0.03 (0.32%)
AVN 78.31 Increased By ▲ 0.19 (0.24%)
BOP 5.40 No Change ▼ 0.00 (0%)
CNERGY 4.92 Increased By ▲ 0.07 (1.44%)
EFERT 77.89 Decreased By ▼ -0.11 (-0.14%)
EPCL 55.85 Increased By ▲ 0.05 (0.09%)
FCCL 15.35 Increased By ▲ 0.16 (1.05%)
FFL 6.43 Increased By ▲ 0.11 (1.74%)
FLYNG 8.19 Increased By ▲ 1.09 (15.35%)
GGGL 10.32 Decreased By ▼ -0.03 (-0.29%)
GGL 16.52 Increased By ▲ 0.21 (1.29%)
GTECH 9.07 Increased By ▲ 0.89 (10.88%)
HUMNL 6.41 Increased By ▲ 0.02 (0.31%)
KEL 2.99 Increased By ▲ 0.07 (2.4%)
LOTCHEM 29.00 Increased By ▲ 0.05 (0.17%)
MLCF 28.00 Increased By ▲ 0.55 (2%)
OGDC 74.86 Decreased By ▼ -0.34 (-0.45%)
PAEL 16.10 Increased By ▲ 0.15 (0.94%)
PIBTL 5.58 Increased By ▲ 0.03 (0.54%)
PRL 17.07 Increased By ▲ 0.16 (0.95%)
SILK 1.06 Decreased By ▼ -0.01 (-0.93%)
TELE 10.89 Increased By ▲ 0.19 (1.78%)
TPL 8.02 Increased By ▲ 0.05 (0.63%)
TPLP 21.13 Increased By ▲ 0.30 (1.44%)
TREET 23.25 Increased By ▲ 0.25 (1.09%)
TRG 132.75 Increased By ▲ 4.05 (3.15%)
UNITY 23.43 Increased By ▲ 0.08 (0.34%)
WAVES 11.52 Decreased By ▼ -0.02 (-0.17%)
WTL 1.55 Increased By ▲ 0.44 (39.64%)
BR100 4,143 Increased By 30.1 (0.73%)
BR30 15,744 Increased By 149.7 (0.96%)
KSE100 41,339 Increased By 127 (0.31%)
KSE30 15,463 Increased By 52.7 (0.34%)
Follow us

NEW YORK: Oil prices were little changed on Wednesday after US oil inventories rose and after US inflation figures bolstered the case for another big Federal Reserve interest rate increase.

Brent crude was down 39 cents to $99.10 a barrel as of 1:18 p.m. ET (1718 GMT), while US West Texas Intermediate crude fell 10 cents to $96.74 a barrel.

Investors have been selling oil of late on worries that aggressive rate hikes to stem inflation will slow economic growth and hit oil demand. Prices fell by more than 7% on Tuesday in volatile trade to settle below $100 for the first time since April.

“Demand issues are catching up to high prices. The US dollar is causing downside pressure on all commodities. There’s been a shift in mentality over the last couple of weeks,” said Tony Headrick, energy markets analyst at CHS Hedging.

However, the physical market remains tight. Key benchmarks, such as Forties crude and US Midland crude, are trading at premiums to the futures market, painting a different picture than what is happening in futures.

This week, both the Organization of the Petroleum Exporting Countries and International Energy Agency, in monthly reports, warned that demand was weakening, particularly in the largest world economies.

US oil inventories rose more than expected in a mild respite from the tightness in markets. US commercial crude stocks rose by 3.3 million barrels, government data showed, versus expectations for a modest draw in stocks.

Investors remain concerned about recent weakness in fuel demand worldwide that is also emerging in the United States.

US consumer prices accelerated to 9.1% in June as gasoline and food costs remained elevated, cementing the case for the Federal Reserve to hike interest rates by 75 basis points later this month.

Brent is down sharply since hitting $139 in March, which was close to the all-time high in 2008. Renewed COVID-19 curbs in China have weighed on the market this week.

The decline in crude futures has yet to be reflected in the strong physical oil market. Forties crude, one of the grades underpinning Brent futures, was bid at a record high premium to the benchmark of plus $5.35 a barrel on Tuesday.

US Midland crude was at a premium of $1.50 a barrel to WTI, also reflecting tightness but that grade was below premiums reached in late February after Ukraine was invaded.

Comments

Comments are closed.