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%)
Markets

Oil rises 2pc as tightening supplies take focus

NEW YORK: Oil rose 2 percent on Tuesday as attention centered on  geopolitical factors tightening supplies that are
Published March 26, 2019

NEW YORK: Oil rose 2 percent on Tuesday as attention centered on  geopolitical factors tightening supplies that are leading to falling exports from Venezuela and declining U.S. inventories.

Despite concerns about weaker demand due to an economic slowdown, oil prices have risen more than 25 percent this year, supported by supply curbs by the Organization of the Petroleum Exporting Countries plus allies, and losses due to U.S. sanctions on Iran and Venezuela.

Venezuela's main oil export port of Jose and its four crude upgraders have been unable to resume operations following a massive power blackout on Monday, the second in a month, according to industry workers and a union leader close to the facilities.

"There is no electricity, everything is paralyzed," oil workers' union leader Jose Bodas told Reuters on Tuesday.

The blackout earlier this month, due to years of underinvestment and lack of maintenance, also interrupted oil exports at Jose, the lifeblood of the OPEC nation's economy, eroding total export volumes and causing delays in loading and discharging oil.

"We're seeing increasing attention paid to what is going on in Venezuela and to the affect of sanctions," said Gene McGillian, director of market research at Tradition Energy.

"Buyers are driving price higher due to expectations that tightening of waivers on U.S. sanctions on Iran will create a tighter fundamental picture," he said.

Brent was up 52 cents at $67.73 a barrel by 2:09 p.m. EDT (1709 GMT), not far from its 2019 high of $68.69 reached on March 21.

U.S. crude futures' gains were sharper, rising 96 cents a barrel, or 1.7 percent, to $59.78, ahead of weekly inventory data.

U.S. crude inventories were forecast to have fallen last week by 1.2 million barrels in what would be a third straight weekly decline. Gasoline stockpiles were also expected to draw down for a sixth week in a row. Industry data from the American Petroleum Institute is due at 4:30 p.m., followed by the government's report on Wednesday.

Worries about demand have limited oil's rally as manufacturing data from Asia, Europe and the United States pointed to an economic slowdown, although bullish bets by some investors are rising.

"So far, demand concerns have not proven too much of a headwind," analysts at JBC Energy wrote.

Investor concern over the global economy had intensified on Friday after disappointing German and U.S. factory data led to an inversion of the U.S. Treasury yield curve, which some see as a leading indicator of recession.

"Recession risks have risen to the highest since 2008," said Ole Hansen, head of commodity strategy at Saxo Bank.

Copyright Reuters, 2019
 

Comments

Comments are closed.