AGL 5.27 Decreased By ▼ -0.23 (-4.18%)
ANL 8.45 Decreased By ▼ -0.04 (-0.47%)
AVN 75.82 Increased By ▲ 0.02 (0.03%)
BOP 5.15 Decreased By ▼ -0.09 (-1.72%)
CNERGY 4.41 Decreased By ▼ -0.01 (-0.23%)
EFERT 81.30 Decreased By ▼ -0.33 (-0.4%)
EPCL 49.29 Decreased By ▼ -0.41 (-0.82%)
FCCL 12.40 Decreased By ▼ -0.39 (-3.05%)
FFL 5.51 Increased By ▲ 0.01 (0.18%)
FLYNG 6.82 Increased By ▲ 0.09 (1.34%)
FNEL 4.68 Decreased By ▼ -0.02 (-0.43%)
GGGL 9.27 Increased By ▲ 0.85 (10.1%)
GGL 14.88 Increased By ▲ 0.93 (6.67%)
HUMNL 6.18 Increased By ▲ 0.10 (1.64%)
KEL 2.57 Increased By ▲ 0.01 (0.39%)
LOTCHEM 27.73 Increased By ▲ 0.08 (0.29%)
MLCF 23.57 Decreased By ▼ -0.22 (-0.92%)
OGDC 71.91 Increased By ▲ 0.81 (1.14%)
PAEL 15.13 Increased By ▲ 0.10 (0.67%)
PIBTL 4.83 Decreased By ▼ -0.07 (-1.43%)
PRL 15.66 Decreased By ▼ -0.32 (-2%)
SILK 1.07 Decreased By ▼ -0.03 (-2.73%)
TELE 8.85 Increased By ▲ 0.03 (0.34%)
TPL 7.34 Increased By ▲ 0.26 (3.67%)
TPLP 19.49 Increased By ▲ 0.23 (1.19%)
TREET 21.08 Increased By ▲ 0.23 (1.1%)
TRG 137.25 Increased By ▲ 0.65 (0.48%)
UNITY 16.30 Decreased By ▼ -0.25 (-1.51%)
WAVES 9.35 Increased By ▲ 0.10 (1.08%)
WTL 1.38 Increased By ▲ 0.03 (2.22%)
BR100 4,164 Increased By 6.3 (0.15%)
BR30 15,350 Increased By 10.3 (0.07%)
KSE100 41,698 Increased By 46.7 (0.11%)
KSE30 15,402 Increased By 22.3 (0.15%)
Follow us

LONDON: Oil prices are proving resilient to global economic recession fears and have outperformed major equity indices and the US dollar so far this year as Western sanctions on Russia further limit supplies to an already tight market.

The two major crude futures contracts are up about 30% so far this year, while the All Country World Index (ACWI) is down about 15%, Refinitiv Eikon data shows.

MSCI’s 47-country world stocks index suffered its biggest first-half drop since its creation in 1990 as inflation hit 40-year highs and central banks raised interest rates.

The US dollar index, which measures the value of the greenback against a basket of other major currencies, is up about 10% so far this year, the data shows.

“Low oil inventories and dwindling spare capacity have been the drivers of the oil rally,” UBS analyst Giovanni Staunovo said.

Oil rises as dollar strength eases, but Fed weighs

For much of the last two years, production by the Organization of the Petroleum Exporting Countries and allies led by Russia, together known as OPEC+, has been below agreed output targets as many members struggle with capacity issues. The supply shortfall hit about 3 million barrels per day in June - about 3% of global supplies - OPEC+ internal data shows. “The bullish commodities conviction holds as long as demand levels are still above supply levels,” bank MUFG said.

“By contrast, financial markets are anticipatory assets driven by the growth ‘rate’ of demand, which is evidently falling”. Oanda analyst Craig Earlam added that equities have been negatively impacted by various developments including the oil price itself, which is contributing to spiralling inflation levels.

Comments

Comments are closed.

Oil outshines stocks and dollar in 2022

Reko Diq mining project: Settlement with Barrick Gold endorsed by SC

Economy: Dar, others take stock of situation

CDA seals Azam Swati’s Islamabad farmhouse

Xi calls for oil trade in yuan

Bangladesh opposition mounts huge protest in capital

Pakistan 202 all out in Multan, England lead by 79

Unilateral hike in rates of SEZs’ plots disallowed

Russia could cut oil production over West’s ‘stupid’ price cap

ECs: SBP further tightening data reporting mechanism

Wapda asked to shift troops from Dasu hospital