AGL 37.99 Decreased By ▼ -0.16 (-0.42%)
AIRLINK 121.40 Decreased By ▼ -0.11 (-0.09%)
BOP 5.76 Decreased By ▼ -0.09 (-1.54%)
CNERGY 3.71 Decreased By ▼ -0.04 (-1.07%)
DCL 8.28 Decreased By ▼ -0.12 (-1.43%)
DFML 41.12 Increased By ▲ 0.23 (0.56%)
DGKC 84.89 Increased By ▲ 0.29 (0.34%)
FCCL 32.75 Increased By ▲ 0.05 (0.15%)
FFBL 65.83 Increased By ▲ 0.33 (0.5%)
FFL 9.89 Decreased By ▼ -0.16 (-1.59%)
HUBC 103.75 Decreased By ▼ -0.05 (-0.05%)
HUMNL 13.25 No Change ▼ 0.00 (0%)
KEL 4.45 Increased By ▲ 0.02 (0.45%)
KOSM 7.13 Increased By ▲ 0.04 (0.56%)
MLCF 37.60 Increased By ▲ 0.10 (0.27%)
NBP 60.54 Increased By ▲ 0.29 (0.48%)
OGDC 172.88 Increased By ▲ 0.63 (0.37%)
PAEL 24.79 Decreased By ▼ -0.01 (-0.04%)
PIBTL 5.67 Decreased By ▼ -0.03 (-0.53%)
PPL 143.00 Increased By ▲ 1.31 (0.92%)
PRL 22.70 Decreased By ▼ -0.02 (-0.09%)
PTC 14.57 Decreased By ▼ -0.17 (-1.15%)
SEARL 65.12 Increased By ▲ 0.56 (0.87%)
TELE 7.00 Decreased By ▼ -0.14 (-1.96%)
TOMCL 35.65 Increased By ▲ 0.15 (0.42%)
TPLP 7.33 Increased By ▲ 0.04 (0.55%)
TREET 14.20 No Change ▼ 0.00 (0%)
TRG 51.00 Decreased By ▼ -0.75 (-1.45%)
UNITY 26.35 Decreased By ▼ -0.25 (-0.94%)
WTL 1.23 Increased By ▲ 0.01 (0.82%)
BR100 9,509 Increased By 26.4 (0.28%)
BR30 28,469 Increased By 98.2 (0.35%)
KSE100 89,200 Increased By 233 (0.26%)
KSE30 27,786 Decreased By -41.5 (-0.15%)

Oil steadied on Monday as short-covering countered an easing of concerns that Tropical Storm Debby would batter US production platforms in the Gulf of Mexico and fading hopes that a European summit would produce a viable solution to the region's debt crisis.
Prices traded lower for most of the US session as forecasts showed Debby, the first named storm of the 2012 Atlantic hurricane season to threaten the Gulf, turning toward Florida and away from the region that is home to roughly 20 percent of US oil production. Oil companies had shut down over 44 percent of oil production in the Gulf on Monday after earlier forecasts showed the storm heading into the region, but producers were already restoring workers to platforms and returning output as the threat waned. Debby's threat to the Gulf had pushed oil prices up about 2 percent on Friday.
Investors were also cautious due to worries that the European Union summit this week would do little to calm market anxiety about the euro zone debt crisis. As expectations of positive action from EU leaders have wilted, the euro fell to a near two-week low against the dollar.
"Oil continues to be weighed down by negative sentiment for global growth ahead of a two-day summit of EU leaders June 28," said Addison Armstrong, senior director of market research at Tradition Energy in Stamford, Connecticut. Short-covering late in the day helped Brent crude settle up slightly, by 3 cents at $91.01 a barrel, off earlier lows of $89.60. US crude fell 55 cents to settle at $79.21 a barrel, after hitting an early high of $80.68.
Trading volumes were light, with Brent down 20 percent from its 30-day average while US crude was down 30 percent, according to Reuters data. Brokers said concerns about the European crisis had pushed many players to the sidelines. US gasoline futures rose nearly 3 percent due to concerns about supplies in the New York Harbour, the delivery point for the contract.
Sovereign debt troubles as well as shaky banks in some euro zone nations, currently ample supply from the Organisation of the Petroleum Exporting Countries (Opec) and slowing growth in the United States and China have pressured oil futures due to worries about demand.
As of last week, Brent and US crude have fallen more than 25 percent from their year's high of $128.40 and $110.50 respectively achieved in March as investors have been pruning their positions in riskier assets such as oil. Saudi Arabia is showing no sign of changing its policy of high output in order to support global economic growth. The top Opec producer is largely responsible for the extra volumes that have taken Opec in excess of its official output ceiling of 30 million barrels per day. Opec ministers this month said they would adhere to the collective limit, implying a 1.6 million bpd cut from actual supply from 12 members. To achieve that, Saudi Arabia has to reduce production sharply and prospects of that appear slim.

Copyright Reuters, 2012

Comments

Comments are closed.