AIRLINK 69.92 Increased By ▲ 4.72 (7.24%)
BOP 5.46 Decreased By ▼ -0.11 (-1.97%)
CNERGY 4.50 Decreased By ▼ -0.06 (-1.32%)
DFML 25.71 Increased By ▲ 1.19 (4.85%)
DGKC 69.85 Decreased By ▼ -0.11 (-0.16%)
FCCL 20.02 Decreased By ▼ -0.28 (-1.38%)
FFBL 30.69 Increased By ▲ 1.58 (5.43%)
FFL 9.75 Decreased By ▼ -0.08 (-0.81%)
GGL 10.12 Increased By ▲ 0.11 (1.1%)
HBL 114.90 Increased By ▲ 0.65 (0.57%)
HUBC 132.10 Increased By ▲ 3.00 (2.32%)
HUMNL 6.73 Increased By ▲ 0.02 (0.3%)
KEL 4.44 No Change ▼ 0.00 (0%)
KOSM 4.93 Increased By ▲ 0.04 (0.82%)
MLCF 36.45 Decreased By ▼ -0.55 (-1.49%)
OGDC 133.90 Increased By ▲ 1.60 (1.21%)
PAEL 22.50 Decreased By ▼ -0.04 (-0.18%)
PIAA 25.39 Decreased By ▼ -0.50 (-1.93%)
PIBTL 6.61 Increased By ▲ 0.01 (0.15%)
PPL 113.20 Increased By ▲ 0.35 (0.31%)
PRL 30.12 Increased By ▲ 0.71 (2.41%)
PTC 14.70 Decreased By ▼ -0.54 (-3.54%)
SEARL 57.55 Increased By ▲ 0.52 (0.91%)
SNGP 66.60 Increased By ▲ 0.15 (0.23%)
SSGC 10.99 Increased By ▲ 0.01 (0.09%)
TELE 8.77 Decreased By ▼ -0.03 (-0.34%)
TPLP 11.51 Decreased By ▼ -0.19 (-1.62%)
TRG 68.61 Decreased By ▼ -0.01 (-0.01%)
UNITY 23.47 Increased By ▲ 0.07 (0.3%)
WTL 1.34 Decreased By ▼ -0.04 (-2.9%)
BR100 7,394 Increased By 99.2 (1.36%)
BR30 24,121 Increased By 266.7 (1.12%)
KSE100 70,910 Increased By 619.8 (0.88%)
KSE30 23,377 Increased By 205.6 (0.89%)

LONDON: Oil prices stabilised on Thursday as investor caution dominated ahead of inflation data expected to offer clues on U.S. interest rates.

Brent crude dipped 12 cents to $87.43 a barrel by 0955 GMT while West Texas Intermediate crude (WTI) edged down by 21 cents to $84.19.

Both benchmarks have been on a sustained rally since June, with WTI trading at its highest this year on Thursday and Brent hitting its highest price since January.

Oil prices have been boosted in recent days by extensions to output cuts by Saudi Arabia and Russia, alongside supply fears driven by the potential for tensions between Russia and Ukraine in the Black Sea region to threaten Russian oil shipments.

“At present it does not appear that there is anything untoward in the energy sector to upset this rally. Commentators and traders alike are much concentrated on fundamentals rather than what might be ailing the wider macroeconomic suite,” said John Evans of oil broker PVM.

“The poor state of China’s manufacturing, its property sector and some stubborn world inflation stand out as issues that the oil fraternity chooses to ignore at present.”

All eyes are on July consumer prices data from the United States on Thursday, which should provide a steer on the U.S. Federal Reserve’s future monetary policy.

“It will take something big for the Fed to consider hiking again, you would think, having shifted to a more gradual approach in recent months,” said OANDA analyst Craig Orlam.

Also weighing on prices, U.S. crude inventories rose by 5.9 million barrels in the past week, eclipsing analyst expectations in a Reuters poll for a rise of 0.6 million barrels, U.S. Energy Information Administration data showed on Wednesday.

U.S. crude oil exports fell by 2.9 million barrels per day last week, the steepest fall on record, data showed. But the market is expecting crude exports to rise because of the U.S. crude futures and Brent spread, said Phil Flynn, analyst at Price Futures Group.

Meanwhile, recent data showed the consumer sector in China fell into deflation and factory gate prices extended declines in July, raising concerns about fuel demand in the world’s second-largest economy.

Comments

Comments are closed.