AIRLINK 58.23 Decreased By ▼ -0.37 (-0.63%)
BOP 6.24 Increased By ▲ 0.03 (0.48%)
CNERGY 3.97 Decreased By ▼ -0.02 (-0.5%)
DFML 16.07 Increased By ▲ 0.06 (0.37%)
DGKC 67.61 Increased By ▲ 0.29 (0.43%)
FCCL 17.82 Increased By ▲ 0.27 (1.54%)
FFBL 25.40 Decreased By ▼ -0.49 (-1.89%)
FFL 9.15 Increased By ▲ 0.01 (0.11%)
GGL 9.79 Increased By ▲ 0.02 (0.2%)
HBL 113.77 Increased By ▲ 1.27 (1.13%)
HUBC 111.61 Decreased By ▼ -3.68 (-3.19%)
HUMNL 6.55 Decreased By ▼ -0.04 (-0.61%)
KEL 4.39 Increased By ▲ 0.17 (4.03%)
KOSM 4.59 Increased By ▲ 1.03 (28.93%)
MLCF 37.73 Increased By ▲ 0.62 (1.67%)
OGDC 125.21 Increased By ▲ 8.81 (7.57%)
PAEL 22.61 Decreased By ▼ -0.10 (-0.44%)
PIAA 11.10 Increased By ▲ 0.31 (2.87%)
PIBTL 6.17 Decreased By ▼ -0.08 (-1.28%)
PPL 109.07 Increased By ▲ 5.07 (4.88%)
PRL 26.84 Increased By ▲ 0.45 (1.71%)
PTC 10.48 Increased By ▲ 0.95 (9.97%)
SEARL 52.85 Increased By ▲ 0.86 (1.65%)
SNGP 66.38 Increased By ▲ 1.26 (1.93%)
SSGC 11.01 Increased By ▲ 0.08 (0.73%)
TELE 7.13 Decreased By ▼ -0.08 (-1.11%)
TPLP 11.93 Decreased By ▼ -0.06 (-0.5%)
TRG 76.07 Decreased By ▼ -0.78 (-1.01%)
UNITY 20.47 Decreased By ▼ -0.02 (-0.1%)
WTL 1.30 No Change ▼ 0.00 (0%)
BR100 6,441 Increased By 109.2 (1.72%)
BR30 22,098 Increased By 468.8 (2.17%)
KSE100 62,816 Increased By 901.5 (1.46%)
KSE30 21,134 Increased By 282.7 (1.36%)

NEW YORK: Oil prices dipped on Tuesday, following other risk assets lower, as the dollar stayed strong and investors anticipated more central bank interest-rate hikes designed to quell inflation.

The US Federal Reserve is likely to raise interest rates by another 75 basis points on Wednesday to rein in inflation. Those expectations are weighing on equities, which often move in tandem with oil prices. Other central banks, including the Bank of England, meet this week as well.

Higher rates have bolstered the dollar, which remained near a two-decade high against peers on Tuesday, making oil more expensive for holders of other currencies.

“The oil market is caught between downward concerns and upside hopes. The concerns are driven by the aggressive monetary tightening in the US and Europe, which is increasing the likelihood of a recession and might weigh on oil demand prospects,” said Giovanni Staunovo, commodity analyst at UBS.

Brent crude futures for November settlement fell by $1.77, or 1.9%, to $90.23 a barrel at 12:44 p.m. EST (1644 GMT). US West Texas Intermediate crude for October delivery was at $83.95, down $1.78. The October contract will expire on Tuesday and the more active November contract was down $1.95, or 2.3%, at $83.41.

Both Brent and WTI are on track for their worst quarterly drops in percentage terms since the beginning of the COVID-19 pandemic. Brent hit about $139 a barrel in March for its highest since 2008.

“The dollar is key and the Fed is key; they’re going to kill demand for anything inflationary,” said Robert Yawger, director of energy futures at Mizuho in New York.

China left its benchmark lending rates unchanged on Tuesday as the world’s second-biggest oil user tries to balance sluggish economic growth against its weakening yuan currency.

US crude oil stocks are estimated to have risen last week by about 2 million barrels, a Reuters poll showed. US vehicle travel in July fell 3.3% from a year earlier, a second consecutive drop.

“We’re going to roll into turnaround season here so it’s neither driving season or heating season for the next six to seven weeks,” Yawger said.

A document from the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia showed the group fell short of its output target in August by 3.58 million barrels per day (bpd) - about 3.5% of global oil demand.

Comments

Comments are closed.