AGL 5.75 No Change ▼ 0.00 (0%)
ANL 8.95 Increased By ▲ 0.10 (1.13%)
AVN 78.90 Decreased By ▼ -0.60 (-0.75%)
BOP 5.27 Increased By ▲ 0.10 (1.93%)
CNERGY 4.73 Increased By ▲ 0.04 (0.85%)
EFERT 81.80 Increased By ▲ 0.70 (0.86%)
EPCL 51.01 Increased By ▲ 0.02 (0.04%)
FCCL 13.39 Decreased By ▼ -0.10 (-0.74%)
FFL 5.80 Decreased By ▼ -0.01 (-0.17%)
FLYNG 7.14 Decreased By ▼ -0.07 (-0.97%)
FNEL 4.83 Increased By ▲ 0.03 (0.63%)
GGGL 8.92 Increased By ▲ 0.22 (2.53%)
GGL 15.98 Increased By ▲ 0.23 (1.46%)
HUMNL 5.78 Decreased By ▼ -0.07 (-1.2%)
KEL 2.67 Increased By ▲ 0.09 (3.49%)
LOTCHEM 29.19 Decreased By ▼ -0.31 (-1.05%)
MLCF 24.95 Decreased By ▼ -0.35 (-1.38%)
OGDC 72.65 Increased By ▲ 0.20 (0.28%)
PAEL 15.32 Decreased By ▼ -0.08 (-0.52%)
PIBTL 5.08 Decreased By ▼ -0.07 (-1.36%)
PRL 16.32 Increased By ▲ 0.07 (0.43%)
SILK 1.08 Increased By ▲ 0.01 (0.93%)
TELE 9.40 Increased By ▲ 0.10 (1.08%)
TPL 7.35 No Change ▼ 0.00 (0%)
TPLP 18.84 Decreased By ▼ -0.32 (-1.67%)
TREET 22.00 Increased By ▲ 0.15 (0.69%)
TRG 140.47 Decreased By ▼ -2.33 (-1.63%)
UNITY 17.11 Decreased By ▼ -0.09 (-0.52%)
WAVES 9.90 Decreased By ▼ -0.13 (-1.3%)
WTL 1.42 Increased By ▲ 0.04 (2.9%)
BR100 4,260 Increased By 12 (0.28%)
BR30 15,741 Decreased By -20.1 (-0.13%)
KSE100 42,415 Increased By 66.8 (0.16%)
KSE30 15,675 Increased By 42.3 (0.27%)
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 records gains against US dollar

Rise in TTP attacks in Pakistan should be concern for Afghan Taliban: Rana Sanaullah

Dar dismisses sovereign default threat

Ban on GMO soyabean: govt, importers take divergent positions

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

Google app payments: IT ministry says issue resolved

Musk says Twitter clash with Apple a ‘misunderstanding’

Dollar plunges to 3-month low vs yen as Powell says Fed to go slow

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

England openers score a ton each in 1st Pakistan Test