AVN 67.75 Decreased By ▼ -0.73 (-1.07%)
BAFL 30.98 Decreased By ▼ -0.02 (-0.06%)
BOP 4.81 Decreased By ▼ -0.10 (-2.04%)
CNERGY 3.76 Increased By ▲ 0.01 (0.27%)
DFML 13.98 Decreased By ▼ -0.25 (-1.76%)
DGKC 41.00 Decreased By ▼ -0.64 (-1.54%)
EPCL 47.05 Increased By ▲ 1.68 (3.7%)
FCCL 11.65 Decreased By ▼ -0.06 (-0.51%)
FFL 5.16 Increased By ▲ 0.06 (1.18%)
FLYNG 5.94 Increased By ▲ 0.09 (1.54%)
GGL 11.29 Increased By ▲ 0.88 (8.45%)
HUBC 67.95 Decreased By ▼ -0.55 (-0.8%)
HUMNL 5.70 Decreased By ▼ -0.05 (-0.87%)
KAPCO 28.04 Decreased By ▼ -0.18 (-0.64%)
KEL 2.27 Increased By ▲ 0.01 (0.44%)
LOTCHEM 26.20 Increased By ▲ 1.10 (4.38%)
MLCF 21.66 Increased By ▲ 0.08 (0.37%)
NETSOL 86.45 Decreased By ▼ -1.90 (-2.15%)
OGDC 100.49 Increased By ▲ 1.19 (1.2%)
PAEL 11.15 Increased By ▲ 0.04 (0.36%)
PIBTL 4.24 Increased By ▲ 0.01 (0.24%)
PPL 80.60 Decreased By ▼ -1.85 (-2.24%)
PRL 13.23 Decreased By ▼ -0.11 (-0.82%)
SILK 0.91 Increased By ▲ 0.01 (1.11%)
SNGP 43.90 Decreased By ▼ -0.48 (-1.08%)
TELE 6.07 Decreased By ▼ -0.11 (-1.78%)
TPLP 15.85 Increased By ▲ 0.04 (0.25%)
TRG 121.58 Increased By ▲ 1.83 (1.53%)
UNITY 14.00 Decreased By ▼ -0.10 (-0.71%)
WTL 1.32 Increased By ▲ 0.06 (4.76%)
BR100 4,181 Increased By 9.7 (0.23%)
BR30 15,270 Increased By 16.5 (0.11%)
KSE100 41,723 Increased By 200.6 (0.48%)
KSE30 15,746 Increased By 83 (0.53%)
Follow us

NEW YORK: Oil prices rose nearly $3 a barrel on Friday as attention turned to next week's OPEC+ meeting and dimming expectations that the producer group will boost supply.

Brent crude futures for September settlement, due to expire on Friday, gained $2.79, or 2.6%, to trade at $109.93 a barrel by 12:10 p.m. EDT (1710 GMT) after touching their highest since July 5. The more active October contract was up $2.25, or 2.2%, at $104.11.

U.S. West Texas Intermediate (WTI) crude futures rose $2.79, or 3%, to $99.21 a barrel.

Oil pared some gains after the release of data from oil services firm Baker Hughes, which showed that U.S. drillers added crude rigs for a record 23 months in a row, indicating more supply ahead.

The number of rigs drilling for gas in the United States rose by 2 to 157 in the week to Jul 29, while oil-directed drilling rigs rose by 6 to 605, the Baker Hughes data showed.

Both contracts were set for a weekly rise but also on track for a second monthly loss, with Brent down 4% for July and WTI down 6%.

Stronger stock markets supported oil on Friday, as did a weaker dollar, which makes oil cheaper for buyers with other currencies.

"These days, there has been a lot of macro influences on the oil market with the stock market making a nice rebound and a similar fall in the dollar feeding into (today's prices)," said John Kilduff, partner at Again Capital LLC.

Global equities, which often move in tandem with oil prices, were up on the hope that disappointing growth figures would encourage the U.S. Federal Reserve to ease up on monetary tightening.

A Reuters survey forecast Brent would average $105.75 a barrel this year with U.S. crude averaging $101.28.

OPEC+ production struggles widen to nearly 3mn bpd

Front-month Brent futures are selling at a rising premium to later-loading months, a market structure known as backwardation, indicating tight current supply.

"The oil market in Europe is considerably tighter than in the U.S., which is also reflected in the sharply falling Brent forward curve," said Commerzbank analyst Carsten Fritsch.

Investors will watch the next meeting of the Aug. 3 meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, together known as OPEC+.

OPEC+ sources said the group will consider keeping oil output unchanged for September, with two saying a modest increase would be discussed.

A decision not to raise output would disappoint the United States after President Joe Biden visited Saudi Arabia this month hoping for a deal to open the taps.

Analysts said it would be difficult for OPEC+ to boost supply, given that many producers are already struggling to meet production quotas.

OPEC+ compliance with oil output cut pledges reached 320% in June, Russian Interfax news agency reported, citing a source familiar with the data. It said the group's combined oil underproduction was 2.84 million barrels per day last month.

Comments

Comments are closed.

Oil prices up nearly $3/bbl as chances of OPEC+ supply boost dim

PL on POL products target: IMF-govt talks hamstrung by disconnect

ECP should announce election schedule for KP, Punjab: President Alvi

Death toll from Syria-Turkiye quake nears 10,000

Pak Suzuki announces plant shutdown yet again due to inventory shortage

MCB's profit up 10% in 2022

LHC suspends ECP's order de-notifying 43 PTI MNAs

FY24 budget: FBR invites proposals on income tax

AIIB chief economist briefed about state of economy

Sri Lanka bankruptcy to last until 2026: president

12 TTP terrorists killed in KPK’s Lakki Marwat: ISPR