AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 132.66 Increased By ▲ 3.13 (2.42%)
BOP 6.89 Increased By ▲ 0.21 (3.14%)
CNERGY 4.57 Decreased By ▼ -0.06 (-1.3%)
DCL 8.92 Decreased By ▼ -0.02 (-0.22%)
DFML 42.75 Increased By ▲ 1.06 (2.54%)
DGKC 84.00 Increased By ▲ 0.23 (0.27%)
FCCL 32.90 Increased By ▲ 0.13 (0.4%)
FFBL 77.06 Increased By ▲ 1.59 (2.11%)
FFL 12.20 Increased By ▲ 0.73 (6.36%)
HUBC 110.01 Decreased By ▼ -0.54 (-0.49%)
HUMNL 14.40 Decreased By ▼ -0.16 (-1.1%)
KEL 5.53 Increased By ▲ 0.14 (2.6%)
KOSM 8.32 Decreased By ▼ -0.08 (-0.95%)
MLCF 39.67 Decreased By ▼ -0.12 (-0.3%)
NBP 65.50 Increased By ▲ 5.21 (8.64%)
OGDC 198.74 Decreased By ▼ -0.92 (-0.46%)
PAEL 26.00 Decreased By ▼ -0.65 (-2.44%)
PIBTL 7.62 Decreased By ▼ -0.04 (-0.52%)
PPL 159.00 Increased By ▲ 1.08 (0.68%)
PRL 26.24 Decreased By ▼ -0.49 (-1.83%)
PTC 18.35 Decreased By ▼ -0.11 (-0.6%)
SEARL 82.24 Decreased By ▼ -0.20 (-0.24%)
TELE 8.12 Decreased By ▼ -0.19 (-2.29%)
TOMCL 34.40 Decreased By ▼ -0.11 (-0.32%)
TPLP 8.98 Decreased By ▼ -0.08 (-0.88%)
TREET 16.88 Decreased By ▼ -0.59 (-3.38%)
TRG 59.49 Decreased By ▼ -1.83 (-2.98%)
UNITY 27.52 Increased By ▲ 0.09 (0.33%)
WTL 1.40 Increased By ▲ 0.02 (1.45%)
BR100 10,614 Increased By 206.9 (1.99%)
BR30 31,874 Increased By 160.5 (0.51%)
KSE100 98,972 Increased By 1644 (1.69%)
KSE30 30,784 Increased By 591.7 (1.96%)

LONDON: Oil prices rose by 1% on Monday to $88.50 a barrel, extending last week’s gains on the back of a stronger outlook due to an expected economic recovery in top oil importer China this year.

Brent crude was up 88 cents, or 1%, to $88.51 at 1247 GMT, their highest since Nov. 18. West Texas Intermediate (WTI) U.S. crude rose 76 cents, or 0.93%, to $82.40 a barrel.

Last week Brent rose 2.8%, while the U.S. benchmark logged a 1.8% gain.

Asian trading was slower due to the Lunar New Year holiday, but analysts said that optimism regarding China’s reopening will likely drive oil prices higher.

Sukrit Vijayakar, director of energy consultancy Trifecta in Mumbai, said the market wants to preserve long positions in case China growth resumes.

Data shows a solid pick-up in travel in China after COVID-19 curbs were eased, ANZ commodity analysts said in a note, pointing to a 22% jump in road traffic congestion so far this month versus a year earlier in the country’s 15 key cities.

Davos 2023: IEA’s Birol expects tighter energy markets in 2023

International Energy Agency head Fatih Birol on Friday said energy markets could tighten this year if the Chinese economy rebounds the way financial institutions expect.

“I wouldn’t be too relaxed about the markets, and 2023 may well be a year where we see tighter markets than some colleagues may think,” Birol told Reuters, speaking on the sidelines of the World Economic Forum annual meeting in Davos.

The jump in China’s traffic ahead of the Lunar New Year holiday bodes well for fuel demand after the two-week vacation.

“The expected surge in demand comes as the market braces for further sanctions on Russian oil,” ANZ analysts said.

The European Union and Group of Seven (G7) coalition will cap prices of Russian refined products starting on Feb. 5, in addition to their price cap on Russian crude in place since December and an EU embargo on imports of Russian crude by sea.

The G7 has agreed to delay a review of the level of the price cap on Russian oil to March, a month later than originally planned, to give time to assess the impact of the oil products price cap.

Also read:

Comments

Comments are closed.