AGL 5.72 Increased By ▲ 0.02 (0.35%)
ANL 8.93 Decreased By ▼ -0.17 (-1.87%)
AVN 79.41 Decreased By ▼ -0.09 (-0.11%)
BOP 5.27 Increased By ▲ 0.10 (1.93%)
CNERGY 4.69 Decreased By ▼ -0.04 (-0.85%)
EFERT 81.51 Increased By ▲ 0.41 (0.51%)
EPCL 50.99 No Change ▼ 0.00 (0%)
FCCL 13.45 Decreased By ▼ -0.07 (-0.52%)
FFL 5.89 Increased By ▲ 0.08 (1.38%)
FLYNG 7.18 Decreased By ▼ -0.11 (-1.51%)
FNEL 4.75 Decreased By ▼ -0.05 (-1.04%)
GGGL 8.72 Decreased By ▼ -0.17 (-1.91%)
GGL 15.85 Increased By ▲ 0.10 (0.63%)
HUMNL 6.07 Increased By ▲ 0.22 (3.76%)
KEL 2.63 Increased By ▲ 0.05 (1.94%)
LOTCHEM 29.49 Decreased By ▼ -0.01 (-0.03%)
MLCF 25.40 Increased By ▲ 0.10 (0.4%)
OGDC 73.01 Increased By ▲ 0.56 (0.77%)
PAEL 15.58 Increased By ▲ 0.18 (1.17%)
PIBTL 5.20 Increased By ▲ 0.05 (0.97%)
PRL 16.30 Increased By ▲ 0.05 (0.31%)
SILK 1.05 Decreased By ▼ -0.05 (-4.55%)
TELE 9.39 Increased By ▲ 0.09 (0.97%)
TPL 7.35 Increased By ▲ 0.02 (0.27%)
TPLP 19.30 Increased By ▲ 0.14 (0.73%)
TREET 21.82 Decreased By ▼ -0.03 (-0.14%)
TRG 143.39 Increased By ▲ 0.59 (0.41%)
UNITY 17.30 Increased By ▲ 0.10 (0.58%)
WAVES 10.05 Increased By ▲ 0.05 (0.5%)
WTL 1.39 Increased By ▲ 0.01 (0.72%)
BR100 4,257 Increased By 9.3 (0.22%)
BR30 15,837 Increased By 75.8 (0.48%)
KSE100 42,484 Increased By 135 (0.32%)
KSE30 15,691 Increased By 58.5 (0.37%)
Follow us

NEW YORK: Oil prices rose by about $3 a barrel on Tuesday on expectations of a large cut in crude output from the OPEC+ producer group, and support from a weaker U.S. dollar.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, look set to cut output when they meet on Wednesday. The move would squeeze supply in an oil market that energy company executives and analysts say is already tight due to healthy demand, a lack of investment and supply problems.

Sources from the group have said that OPEC+, which includes Russia, is discussing output cuts in excess of 1 million barrels per day (bpd). Oil extended gains after Bloomberg reported that OPEC+ was considering a 2 million bpd cut.

"We expect a substantial cut to be made, which will not only help to tighten the physical fundamentals but sends an important signal to the market," Fitch Solutions said in a note.

Kuwait's oil minister said OPEC+ would make a suitable decision to guarantee energy supply and to serve the interests of producers and consumers.

Production target

OPEC+ has boosted output this year after record cuts put in place in 2020 when the pandemic slashed demand.

OPEC+ supply cuts loom over already tight oil market

But in recent months, the group has failed to meet its planned output increases, missing in August by 3.6 million bpd.

The production target cut being considered is justified by the sharp decline in oil prices from recent highs, said Goldman Sachs, adding that this reinforced its bullish outlook on oil.

Also boosting oil prices, the U.S. dollar was headed for a fifth daily loss against a basket of currencies as investors speculated that the U.S. Federal Reserve might slow its interest rate hikes.

Meanwhile, a senior U.S. Treasury official said G7 sanctions on Russia will be implemented in three phases, first targeting Russian oil, then diesel and then lower-value products such as naphtha.

Sanctions from the G7 and the European Union, which is opting for a two-phase ban, are set to begin on Dec. 5.

Swiss lender UBS said it sees several factors that could send crude prices higher toward year-end, including "recovering Chinese demand, OPEC+ further supply cut, the end of the U.S. Strategic Petroleum Reserve (SPR) release and the upcoming EU ban on Russian crude exports".

Top oil traders also said at the Argus European Crude Conference in Geneva on Tuesday that economic headwinds have not yet caused significant erosion of global oil demand.

U.S. crude oil stocks were estimated to have increased by about 2 million barrels in the week to Sept. 30, a preliminary Reuters poll showed on Monday.

Comments

Comments are closed.

Oil prices jump $3/bbl ahead of OPEC+ meeting to discuss supply cuts

Ban on GMO soyabean: govt, importers take divergent positions

Finance Bill 2023: SEZs: FBR to withdraw turnover tax exemption

Country has ‘sufficient’ wheat, cabinet told

Rates of kerosene oil, light diesel dip

FCA for Oct 2022: Nepra to allow KE negative adjustment of Rs2.15/unit

Encashment of SBLC: Resolve Hubco-CPHGC dispute, PM asks authorities concerned

Delay in import of spare parts: Haveli Bahadur Shah power plant faces closure

Media campaigns: ECC approves Rs2bn TSG against Rs5bn demand

Four killed as suicide bomber attacks police guarding polio vaccination team

East Timor opens new port in largest ever foreign investment