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%)

NEW YORK: US oil prices slipped on Wednesday, continuing a recent slide after surging US crude output hit another record and domestic inventories rose more than expected.

The US Energy Information Administration reported that domestic crude inventories rose 5.8 million barrels in the latest week, more than double analysts' expectations.

Crude output hit 11.6 million bpd, a weekly record, though weekly figures can be volatile. Most recent monthly data for August showed overall production at more than 11.3 million bpd.

US crude futures fell 26 cents to $61.96 a barrel as of 1:02 p.m. EST (1802 GMT). That is down nearly 20 percent from a peak close of $76.41 a barrel in early October.

That is down nearly 20 percent from a peak close of $76.41 a barrel in early October.

"The market has yet to prove that it can hold onto a rally, so the short-term mood is still very negative," said Phil Flynn, analyst at Price Futures Group in Chicago.

Brent crude, the global benchmark, rebounded from post-EIA losses, supported by earlier reports that Russia and Saudi Arabia are discussing whether to cut crude output next year. Brent was up 7 cents to $72.19 a barrel.

While Iranian oil exports are expected to fall after US sanctions took effect on Monday, reports from OPEC and other forecasters have indicated the global oil market could have a surplus in 2019 as demand slows.

Russia and Saudi Arabia, the top producers in an OPEC-led alliance, started bilateral talks on a return to production cuts next year, Russia's TASS news agency reported, citing an unnamed source. In June, the producer group decided to relax output curbs in place since 2017, after pressure from US President Donald Trump.

Analysts said those countries may be more willing to cut output now that the US midterm elections are over. Trump, whose Republican party was fighting to retain control of congress, had complained of higher gasoline prices.

"OPEC was feeling the Trump pressure but producers took action with the thinking that they just needed to get past the US election," said Joe McMonigle, analyst at Hedgeye in Washington, in a note Wednesday. "We expect to start hearing public comments from OPEC ministers this weekend" about pulling back on the recent production boost.

A ministerial committee composed of some members of the Organization of the Petroleum Exporting Countries and allies meets on Sunday in Abu Dhabi to discuss the outlook for 2019.

Supply from countries such as Saudi Arabia has risen sharply since June. Also, Washington granted waivers from its sanctions on Iran to eight oil customers of that major supplier.

Copyright Reuters, 2018

Comments

Comments are closed.