AIRLINK 197.60 Decreased By ▼ -0.37 (-0.19%)
BOP 9.92 Decreased By ▼ -0.12 (-1.2%)
CNERGY 7.24 Decreased By ▼ -0.05 (-0.69%)
FCCL 37.04 Increased By ▲ 1.04 (2.89%)
FFL 16.64 Decreased By ▼ -0.27 (-1.6%)
FLYNG 26.80 Increased By ▲ 1.76 (7.03%)
HUBC 135.00 Increased By ▲ 0.97 (0.72%)
HUMNL 14.09 Decreased By ▼ -0.05 (-0.35%)
KEL 4.74 Decreased By ▼ -0.04 (-0.84%)
KOSM 6.79 Decreased By ▼ -0.15 (-2.16%)
MLCF 45.60 Increased By ▲ 0.62 (1.38%)
OGDC 217.00 Decreased By ▼ -1.23 (-0.56%)
PACE 6.93 Decreased By ▼ -0.01 (-0.14%)
PAEL 40.85 Decreased By ▼ -0.57 (-1.38%)
PIAHCLA 17.00 Increased By ▲ 0.14 (0.83%)
PIBTL 8.39 Decreased By ▼ -0.07 (-0.83%)
POWER 9.32 Decreased By ▼ -0.07 (-0.75%)
PPL 184.30 Decreased By ▼ -1.63 (-0.88%)
PRL 41.40 Increased By ▲ 0.13 (0.31%)
PTC 24.85 Increased By ▲ 0.08 (0.32%)
SEARL 103.62 Decreased By ▼ -1.03 (-0.98%)
SILK 1.02 Increased By ▲ 0.01 (0.99%)
SSGC 40.50 Decreased By ▼ -0.41 (-1%)
SYM 17.84 Decreased By ▼ -0.21 (-1.16%)
TELE 8.75 Decreased By ▼ -0.16 (-1.8%)
TPLP 12.61 Decreased By ▼ -0.23 (-1.79%)
TRG 66.30 Decreased By ▼ -0.30 (-0.45%)
WAVESAPP 11.20 Decreased By ▼ -0.10 (-0.88%)
WTL 1.75 Decreased By ▼ -0.03 (-1.69%)
YOUW 3.99 Decreased By ▼ -0.01 (-0.25%)
BR100 12,092 Decreased By -16.9 (-0.14%)
BR30 36,555 Decreased By -42.8 (-0.12%)
KSE100 114,661 Decreased By -381.1 (-0.33%)
KSE30 36,071 Decreased By -128.1 (-0.35%)

LONDON: OPEC+ is now producing below its targets by a record 3.58 million barrels per day - about 3.5% of global demand - highlighting underlying tight supply in the oil market, even as recession fears drag oil prices lower.

Data from the Organization of the Petroleum Exporting Countries and allies led by Russia showed the group, known as OPEC+, showed that shortfall in August, which stood at more than OPEC number 3 producer the UAE’s output, was a record and 24% higher than July’s 2.89 million bpd in July.

Oil prices rose on Tuesday to above $92, partly supported by news of the OPEC+ shortfall, but were headed for a fourth monthly decline ahead of an expected further US interest rate hike which may curb economic growth and fuel demand.

Two main factors have been derailing OPEC+’s ability to hit its production targets: a chronic problem with underinvestment among certain members such as Nigeria and Angola, and, more recently, the impact of Western sanctions on Russian output.

Nigeria’s crude oil production fell below 1 million bpd in August, figures from its regulator show, as the nation grappled with rampant theft from its pipelines and years of underinvestment.

The head of Saudi state oil giant Aramco said on Tuesday said continuing underinvestment in hydrocarbons at a time when alternatives to fossil fuels were still not readily available was the root cause of the problem.

Comments

Comments are closed.