ANL 23.10 Decreased By ▼ -0.70 (-2.94%)
ASC 16.10 Decreased By ▼ -0.30 (-1.83%)
ASL 22.25 Decreased By ▼ -0.40 (-1.77%)
BOP 8.55 Increased By ▲ 0.17 (2.03%)
BYCO 8.96 Increased By ▲ 0.15 (1.7%)
FCCL 18.07 Decreased By ▼ -0.40 (-2.17%)
FFBL 24.45 Decreased By ▼ -0.15 (-0.61%)
FFL 17.90 Decreased By ▼ -0.15 (-0.83%)
FNEL 8.40 Decreased By ▼ -0.14 (-1.64%)
GGGL 22.09 Decreased By ▼ -0.21 (-0.94%)
GGL 43.18 Decreased By ▼ -0.77 (-1.75%)
HUMNL 7.02 Decreased By ▼ -0.15 (-2.09%)
JSCL 20.85 Decreased By ▼ -0.73 (-3.38%)
KAPCO 37.90 Decreased By ▼ -0.20 (-0.52%)
KEL 3.61 Increased By ▲ 0.01 (0.28%)
MDTL 3.00 Decreased By ▼ -0.07 (-2.28%)
MLCF 36.30 Decreased By ▼ -0.18 (-0.49%)
NETSOL 153.30 Decreased By ▼ -4.45 (-2.82%)
PACE 5.98 Decreased By ▼ -0.03 (-0.5%)
PAEL 31.20 Decreased By ▼ -0.45 (-1.42%)
PIBTL 9.36 Decreased By ▼ -0.11 (-1.16%)
POWER 7.90 Decreased By ▼ -0.14 (-1.74%)
PRL 20.85 Decreased By ▼ -0.13 (-0.62%)
PTC 10.40 Increased By ▲ 0.02 (0.19%)
SILK 1.67 Decreased By ▼ -0.02 (-1.18%)
SNGP 43.19 Decreased By ▼ -0.56 (-1.28%)
TELE 22.06 Decreased By ▼ -0.64 (-2.82%)
TRG 173.50 Decreased By ▼ -2.41 (-1.37%)
UNITY 36.20 Decreased By ▼ -0.77 (-2.08%)
WTL 3.25 Decreased By ▼ -0.08 (-2.4%)
BR100 4,979 Decreased By ▼ -47.44 (-0.94%)
BR30 24,460 Decreased By ▼ -312.8 (-1.26%)
KSE100 46,636 Decreased By ▼ -284.38 (-0.61%)
KSE30 18,480 Decreased By ▼ -177.85 (-0.95%)

Coronavirus
VERY HIGH Source: covid.gov.pk
Pakistan Deaths
27,206
7124hr
Pakistan Cases
1,223,841
2,58024hr
4.69% positivity
Sindh
450,126
Punjab
421,800
Balochistan
32,757
Islamabad
104,114
KPK
171,072

NEW YORK: Oil prices rose for a fifth day on Wednesday, supported by a larger-than-expected drop in US inventories and investor expectations that the US Federal Reserve will lower borrowing costs for the first time in more than a decade.

The front-month Brent crude futures contract, which expires Wednesday, rose 41 cents to $65.13 a barrel by 1:15 p.m. EDT (1715 GMT), while the higher-volume second-month contract traded at $65.15 a barrel. Brent was set to end the month down 2.1% for July.

US West Texas Intermediate (WTI) crude futures gained 45 cents to $58.50 a barrel.

US crude inventories fell by 8.5 million barrels in the week ended July 26, the Energy Information Administration said on Wednesday. Analysts expected a decrease of 2.6 million barrels.

"The report was bullish due to the large crude oil inventory drawdown and strong demand from refiners and drivers," said John Kilduff, partner at Again Capital Management. "Refiners are running at very high rates, and gasoline demand remains quite high, as the summer driving season persists."

Most investors expect the Fed to cut interest rates on Wednesday. The decision is due at 2 p.m. EDT (1800 GMT) at the end of a two-day policy meeting.

A rate cut would be "a double boon for oil prices. On one hand it should encourage US oil demand and on the other it will apply downward pressure on the dollar," PVM Oil Associates analyst Stephen Brennock said.

Libya's Sharara oilfield, the country's largest, shut after a problem on Tuesday with a valve on the pipeline linking it to the Zawiya oil terminal. State-owned National Oil Corp (NOC) declared force majeure on loadings of the crude grade on Wednesday.

Saudi Arabia's oil production fell to 9.6 million barrels per day in July and will stay below 10 million bpd in the coming months, a Saudi oil source told Reuters.

Backwardation in Brent <LCOc1-LCOc2>, a market structure in which later-dated contracts trade at lower levels than near-term contracts, has to a large extent evaporated, signaling a well-supplied market despite OPEC-led output cuts and US sanctions on oil producers Iran and Venezuela.

In Shanghai, US-China trade talks are taking place in an effort to end a year-long trade war. Negotiators wrapped up a brief round of trade talks on Wednesday that both sides described as "constructive."

A Reuters monthly poll showed oil prices are expected to be range-bound near current levels this year as slowing economic growth and a protracted trade dispute curb demand.

Copyright Reuters, 2019

Comments

Comments are closed.