AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 132.80 Increased By ▲ 3.27 (2.52%)
BOP 6.90 Increased By ▲ 0.22 (3.29%)
CNERGY 4.58 Decreased By ▼ -0.05 (-1.08%)
DCL 8.91 Decreased By ▼ -0.03 (-0.34%)
DFML 43.00 Increased By ▲ 1.31 (3.14%)
DGKC 84.50 Increased By ▲ 0.73 (0.87%)
FCCL 32.90 Increased By ▲ 0.13 (0.4%)
FFBL 76.71 Increased By ▲ 1.24 (1.64%)
FFL 12.17 Increased By ▲ 0.70 (6.1%)
HUBC 110.25 Decreased By ▼ -0.30 (-0.27%)
HUMNL 14.43 Decreased By ▼ -0.13 (-0.89%)
KEL 5.55 Increased By ▲ 0.16 (2.97%)
KOSM 8.30 Decreased By ▼ -0.10 (-1.19%)
MLCF 39.70 Decreased By ▼ -0.09 (-0.23%)
NBP 66.01 Increased By ▲ 5.72 (9.49%)
OGDC 199.00 Decreased By ▼ -0.66 (-0.33%)
PAEL 26.00 Decreased By ▼ -0.65 (-2.44%)
PIBTL 7.61 Decreased By ▼ -0.05 (-0.65%)
PPL 159.30 Increased By ▲ 1.38 (0.87%)
PRL 26.15 Decreased By ▼ -0.58 (-2.17%)
PTC 18.50 Increased By ▲ 0.04 (0.22%)
SEARL 81.98 Decreased By ▼ -0.46 (-0.56%)
TELE 8.13 Decreased By ▼ -0.18 (-2.17%)
TOMCL 34.48 Decreased By ▼ -0.03 (-0.09%)
TPLP 9.02 Decreased By ▼ -0.04 (-0.44%)
TREET 16.88 Decreased By ▼ -0.59 (-3.38%)
TRG 59.78 Decreased By ▼ -1.54 (-2.51%)
UNITY 27.55 Increased By ▲ 0.12 (0.44%)
WTL 1.41 Increased By ▲ 0.03 (2.17%)
BR100 10,627 Increased By 220.4 (2.12%)
BR30 31,916 Increased By 203 (0.64%)
KSE100 98,918 Increased By 1589.4 (1.63%)
KSE30 30,766 Increased By 573.7 (1.9%)

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.