AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 127.04 No Change ▼ 0.00 (0%)
BOP 6.67 No Change ▼ 0.00 (0%)
CNERGY 4.51 No Change ▼ 0.00 (0%)
DCL 8.55 No Change ▼ 0.00 (0%)
DFML 41.44 No Change ▼ 0.00 (0%)
DGKC 86.85 No Change ▼ 0.00 (0%)
FCCL 32.28 No Change ▼ 0.00 (0%)
FFBL 64.80 No Change ▼ 0.00 (0%)
FFL 10.25 No Change ▼ 0.00 (0%)
HUBC 109.57 No Change ▼ 0.00 (0%)
HUMNL 14.68 No Change ▼ 0.00 (0%)
KEL 5.05 No Change ▼ 0.00 (0%)
KOSM 7.46 No Change ▼ 0.00 (0%)
MLCF 41.38 No Change ▼ 0.00 (0%)
NBP 60.41 No Change ▼ 0.00 (0%)
OGDC 190.10 No Change ▼ 0.00 (0%)
PAEL 27.83 No Change ▼ 0.00 (0%)
PIBTL 7.83 No Change ▼ 0.00 (0%)
PPL 150.06 No Change ▼ 0.00 (0%)
PRL 26.88 No Change ▼ 0.00 (0%)
PTC 16.07 No Change ▼ 0.00 (0%)
SEARL 86.00 No Change ▼ 0.00 (0%)
TELE 7.71 No Change ▼ 0.00 (0%)
TOMCL 35.41 No Change ▼ 0.00 (0%)
TPLP 8.12 No Change ▼ 0.00 (0%)
TREET 16.41 No Change ▼ 0.00 (0%)
TRG 53.29 No Change ▼ 0.00 (0%)
UNITY 26.16 No Change ▼ 0.00 (0%)
WTL 1.26 No Change ▼ 0.00 (0%)
BR100 10,010 Increased By 126.5 (1.28%)
BR30 31,023 Increased By 422.5 (1.38%)
KSE100 94,192 Increased By 836.5 (0.9%)
KSE30 29,201 Increased By 270.2 (0.93%)

LONDON: Oil prices edged lower following a protracted rally, helped by top producers Saudi Arabia and Russia pledging to extend supply cuts through September, further tightening supplies.

Both key benchmarks notching up their sixth consecutive weekly gains last week.

On Monday, Brent crude futures slipped 81 cents to $85.43 a barrel by 1105 GMT, while U.S. West Texas Intermediate crude was at $81.99 a barrel, down 83 cents. WTI dipped by $1 earlier in the session.

“Oil prices could consolidate around the $85 a barrel level (Brent) for a while, capped by ongoing concerns about the pace of China’s recovery and doubts about how long Saudi and Russia will continue to curb production and exports, respectively, given the spare capacity on hand,” said Suvro Sarkar, lead energy analyst at DBS Bank.

Despite the United States losing its top credit rating last week, the underlying global macroeconomic backdrop still appears upbeat, said PVM analyst Tamas Varga.

Stuttering global factory activity is being countered by revived service sectors, inflation is being mitigated, the job market in the U.S. is resilient, and peak interest rates in major economies might be close, he noted.

On the supply side, the world’s top exporter Saudi Arabia on Thursday extended its voluntary production cut of 1 million barrels per day (bpd) to the end of September, keeping the door open for more.

In line with production cuts, Saudi Aramco raised on Saturday the official selling prices for most grades it sells to Asia for a third month in September.

Russia added to the crunch with its announcement to cut oil exports by 300,000 bpd in September.

Alongside these additional cuts and estimates of significant depletion in oil inventories in coming months, said Varga, “the fundamental backdrop becomes blatantly encouraging.”

In focus, however, is Chinese economic data this week to gauge Beijing’s appetite for more stimulus measures to support the world’s second-largest economy, following a dismal second quarter.

Comments

Comments are closed.

Tulukan Mairandi Aug 07, 2023 12:59pm
Good for sisterly Saudi Arabia. Happy for them
thumb_up Recommended (0)