AGL 38.30 Increased By ▲ 0.73 (1.94%)
AIRLINK 131.90 Decreased By ▼ -0.60 (-0.45%)
BOP 5.60 Decreased By ▼ -0.04 (-0.71%)
CNERGY 3.85 Increased By ▲ 0.08 (2.12%)
DCL 8.69 Decreased By ▼ -0.18 (-2.03%)
DFML 40.82 Decreased By ▼ -0.18 (-0.44%)
DGKC 88.72 Decreased By ▼ -1.44 (-1.6%)
FCCL 35.25 Increased By ▲ 0.17 (0.48%)
FFBL 66.45 Decreased By ▼ -0.05 (-0.08%)
FFL 10.50 Increased By ▲ 0.35 (3.45%)
HUBC 109.60 Increased By ▲ 3.20 (3.01%)
HUMNL 14.66 Increased By ▲ 1.26 (9.4%)
KEL 4.83 Decreased By ▼ -0.03 (-0.62%)
KOSM 7.09 Increased By ▲ 0.24 (3.5%)
MLCF 42.50 Increased By ▲ 0.70 (1.67%)
NBP 59.49 Increased By ▲ 0.91 (1.55%)
OGDC 184.00 Increased By ▲ 2.75 (1.52%)
PAEL 25.59 Decreased By ▼ -0.11 (-0.43%)
PIBTL 5.90 Increased By ▲ 0.07 (1.2%)
PPL 147.80 Decreased By ▼ -0.60 (-0.4%)
PRL 23.55 Increased By ▲ 0.33 (1.42%)
PTC 16.46 Increased By ▲ 1.22 (8.01%)
SEARL 69.12 Increased By ▲ 0.33 (0.48%)
TELE 7.23 Decreased By ▼ -0.01 (-0.14%)
TOMCL 35.84 Decreased By ▼ -0.16 (-0.44%)
TPLP 7.55 Increased By ▲ 0.15 (2.03%)
TREET 14.20 Decreased By ▼ -0.04 (-0.28%)
TRG 50.90 Increased By ▲ 0.05 (0.1%)
UNITY 26.89 Increased By ▲ 0.49 (1.86%)
WTL 1.23 Increased By ▲ 0.02 (1.65%)
BR100 9,828 Increased By 60.4 (0.62%)
BR30 29,808 Increased By 407.9 (1.39%)
KSE100 92,358 Increased By 420.4 (0.46%)
KSE30 28,819 Increased By 74.9 (0.26%)

LONDON: Oil prices fell 2% on Tuesday after soaring by more than $5 barrel in the previous session, weighed by fears that an economic slowdown will hit oil demand, though tight supply and a weaker dollar curbed some losses.

Brent crude futures for September settlement were down $1.64, or 1.5%, at $104.63 a barrel by 1328 GMT. The contract rose 5.1% on Monday, the biggest percentage gain since April 12.

WTI crude futures for August delivery fell by $1.63, or 1.6%, to $100.97 a barrel. The contract climbed 5.1% on Monday, the largest percentage gain since May 11.

The August WTI contract expires on Wednesday, and the more actively traded September contract was at $97.50 a barrel, down $1.92, or 1.9%.

The International Monetary Fund on Tuesday warned that any Russian action to stop supplying Europe with gas would trigger economic contractions of more than 5% over the next year in the Czech Republic, Hungary, Slovakia and Italy, the Financial Times reported.

Russia’s Gazprom told customers in Europe it cannot guarantee gas supplies because of “extraordinary” circumstances, according to a letter seen by Reuters.

Expectations for an increase in US crude inventories also weighed on prices. A preliminary Reuters poll showed that US crude and distillate supplies may have risen last week, while gasoline stockpiles likely fell.

Brent oil may test support at $97.62

Oil prices have whipsawed between concerns over supply as Western sanctions on Russian crude and products over Ukraine disrupt trade flows, and worries that central bank efforts to tame inflation may trigger a demand-destroying recession.

US President Joe Biden visited top oil exporter Saudi Arabia last week, hoping to strike a deal on an oil production boost to tame fuel prices.

However, officials from Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC), did not give clear assurances an output increase was secured.

The kingdom’s foreign minister said on Tuesday that he saw no shortage of oil in the market, but a lack of oil refining capacity, making it necessary to invest in more to process crude into various products.

“Prices climbed aggressively as the tight state of affairs on the supply front shifted back into the spotlight,” Stephen Brennock from brokerage PVM said.

Oil prices were also backed by a softer US dollar on Tuesday, which stood around a one-week low, making greenback-dominated oil slightly cheaper for buyers holding other currencies.

Comments

Comments are closed.