AVN 64.89 Decreased By ▼ -0.06 (-0.09%)
BAFL 30.99 Decreased By ▼ -0.52 (-1.65%)
BOP 4.82 Increased By ▲ 0.03 (0.63%)
CNERGY 3.83 Decreased By ▼ -0.01 (-0.26%)
DFML 14.55 Increased By ▲ 0.14 (0.97%)
DGKC 41.60 No Change ▼ 0.00 (0%)
EPCL 46.90 Increased By ▲ 0.20 (0.43%)
FCCL 11.34 Increased By ▲ 0.05 (0.44%)
FFL 5.03 Decreased By ▼ -0.02 (-0.4%)
FLYNG 5.80 Decreased By ▼ -0.02 (-0.34%)
GGL 10.38 Decreased By ▼ -0.07 (-0.67%)
HUBC 66.82 Increased By ▲ 1.18 (1.8%)
HUMNL 5.62 Decreased By ▼ -0.04 (-0.71%)
KAPCO 27.85 Increased By ▲ 0.10 (0.36%)
KEL 2.17 Increased By ▲ 0.02 (0.93%)
LOTCHEM 24.70 Increased By ▲ 0.35 (1.44%)
MLCF 21.60 Increased By ▲ 0.12 (0.56%)
NETSOL 84.25 Decreased By ▼ -0.54 (-0.64%)
OGDC 85.85 Decreased By ▼ -1.40 (-1.6%)
PAEL 11.09 Increased By ▲ 0.11 (1%)
PIBTL 4.20 Decreased By ▼ -0.02 (-0.47%)
PPL 74.55 Decreased By ▼ -1.15 (-1.52%)
PRL 13.55 Decreased By ▼ -0.10 (-0.73%)
SILK 0.89 No Change ▼ 0.00 (0%)
SNGP 40.95 Decreased By ▼ -0.38 (-0.92%)
TELE 5.85 No Change ▼ 0.00 (0%)
TPLP 15.66 Increased By ▲ 0.02 (0.13%)
TRG 112.28 Increased By ▲ 0.58 (0.52%)
UNITY 13.79 Decreased By ▼ -0.19 (-1.36%)
WTL 1.17 Increased By ▲ 0.01 (0.86%)
BR100 4,060 Decreased By -4.4 (-0.11%)
BR30 14,453 Decreased By -15.2 (-0.1%)
KSE100 40,649 Decreased By -84.4 (-0.21%)
KSE30 15,236 Increased By 6.3 (0.04%)
Follow us

LONDON: Oil prices held near three-week highs on Thursday after OPEC+ agreed to tighten global crude supply with a deal to cut production targets by 2 million barrel per day (bpd), the largest reduction since 2020.

Brent crude futures edged down 16 cents, or 0.2%, to $93.21 per barrel by 1020 GMT after settling 1.7% up in the previous session.

U.S. West Texas Intermediate (WTI) crude futures lost 14 cents, or 0.2%, to $87.62 after closing 1.4% up on Wednesday.

The agreement between the Organization of Petroleum Exporting Countries (OPEC) and allies including Russia, a group known collectively as OPEC+, comes ahead of a European Union embargo on Russian oil and would squeeze supplies in an already tight market, adding to inflation.

“We believe that the price impact of the announced measures will be significant,” said Jorge Leon, senior vice-president at Rystad Energy.

“By December this year Brent would reach over $100/bbl, up from our earlier call for $89.”

Oil rises to 3-week highs

Saudi Energy Minister Abdulaziz bin Salman said the real supply cut would be about 1 million to 1.1 million bpd. Saudi Arabia’s share of the cut is about 0.5 million bpd.

Several OPEC+ members have been struggling to produce at quota levels because of underinvestement and sanctions.

U.S. President Joe Biden’s administraion criticised the deal as “shortsighted” and the White House said Biden would continue to assess whether to release further strategic oil stocks to lower prices.

The White House said it would consult Congress on additional paths to reduce the control OPEC and its allies hold over energy prices in an apparent reference to legislation that could expose members of the group to antitrust lawsuits. “This quota reduction is somewhat at odds with global crude oil inventories that are already low, and mostly still trending lower,” U.S. bank Morgan Stanley said.

“Nevertheless, OPEC+ emphasised the significant uncertainty over oil demand into 2023, highlighting recent sharp downward revisions to GDP forecasts and rising recession probabilities.”

Separately on Wednesday, Russian Deputy Prime Minister Alexander Novak said Russia could cut oil output in an attempt to offset the effects of price caps imposed by the West over Moscow’s actions in Ukraine.

A draw in U.S. oil stockpiles last week also supported prices. Crude inventories dropped by 1.4 million barrels to 429.2 million barrels in the week ended Sept. 30, the Energy Information Administration said.

Comments

Comments are closed.

samir sardana Oct 07, 2022 01:28am
OIL INVENTORIES ARE LOW BUT EVEN A DEAD BARNABUS IN HIS GRAVE CAN SEE THAT US FED IS PUSHING THE WORLD INTO A RECESSION FOR THE AMERICANS TO THINK THAT,OPEC WILL KEEP PUMPING OIL IN A FALLING DEMAND, CASE, IS A CLEAR SIGN OF GLOBAL WARMING AND SOLAR IRRADIATION IMPACT, ON THE HUMAN BRAIN. IF FRIDAY JOBS REPORTS, WEAKENS THE USD - BRENT WILL CROSS 100 IN 10 DAYS THERE IS NO POINT IN PUMPING OIL FROM HIGH COST WELLS OR RE-OPENING HIGH COST WELLS - WHEN THE OIL DEMAND IS CLEARLY BEING KILLED BY THE US FED THE LAST US SPR OIL RESERVE RELEASE FAILED ! WILL THIS ONE SUCCEED ? dindooohindoo
thumb_up Recommended (0)

Oil near three-week high on cuts to OPEC+ output targets

Intra-day update: rupee falls further against US dollar

Saudi Arabia links oil refinery’s setup with political consensus

Panel asks PD to broker agreements between govt, gas producing provinces

Rules notified: FBR, banks can share info about civil servants’ assets

India’s Adani denies rise due to Modi as shares slump again

Chinese spy balloon flies over the United States, Pentagon says

Smuggling not the main reason behind USD shortage: FBR

Dar approves proposal to raise $2bn from expats

1,100MW K-3 inaugurated, China praised

PM invites IK, others to APC on terrorism, economy