TOKYO: Oil prices climbed on Tuesday, reversing most of the previous day’s losses, as tight supply and expectations of a further draw in US crude inventories provided support, although fears over the spreading COVID-19 variant capped gains.
Brent crude for September rose 36 cents, or 0.5 percent, to $75.52 a barrel by 0655 GMT, after losing 0.5 percent on Monday. US West Texas Intermediate crude for August was at $74.45 a barrel, up 35 cents, or 0.5 percent, having fallen 0.6 percent the previous day.
“Optimism about tight supply and declining US crude stockpiles lent support,” said Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co.
“Still, growing concerns over a spike in COVID-19 infection cases worldwide and uncertainty over production plans by OPEC+ will likely limit gains,” he added.
US crude inventories were expected to fall for an eighth consecutive week, while gasoline stocks also declined, a preliminary Reuters poll showed on Monday.
Crude stockpiles have declined steadily for several weeks, with US inventories falling to the lowest since February 2020 in the week to July 2.
China’s crude imports in June edged up slightly from May, though they were down sharply from a year earlier when refiners snapped up cheap oil to supply a market recovering from the coronavirus.
Investors shrugged off the Energy Information Administration’s (EIA) monthly drilling productivity report which said crude output from seven major shale formations is expected to rise by 42,000 bpd in August, to 7.907 million bpd, compared with a 28,000 bpd rise in July.
“The predicted increase is still relatively small,” said Satoru Yoshida, a commodity analyst with Rakuten Securities, adding that the continued restraint on drilling by US shale will underpin oil prices going forward.
“Bullish global equities amid hopes for a robust recovery in economy also boosted risk appetite in oil markets,” Yoshida said.
Asian shares jumped on Tuesday as momentum from the overnight gains on Wall Street got a further boost from strong trade data in China.
Still, reports from around the globe of surging infections kept some investors cautious.
The World Health Organization warned the Delta variant was becoming dominant and many countries had yet to receive enough doses of vaccine to secure their health workers.
Oil climbs on expected further draw in US crude inventories
https://arab.news/z4spy
Oil climbs on expected further draw in US crude inventories
- Crude stockpiles have declined steadily for several weeks, with US inventories falling to the lowest since February 2020 in the week to July 2
Talks underway with Saudi Arabia on higher oil flows: Pakistani oil minister
RIYADH: Pakistan is in talks with Saudi Arabia to increase the flow of petroleum products to the country in order to serve shared economic interests and secure Islamabad’s growing energy needs, Pakistani Oil Minister Ali Pervaiz told Al-Eqtisadiah.
Pervaiz said that Pakistan, as a net energy importer with a bill ranging between $15 billion and $20 billion, seeks to strengthen its strategic partnership with Saudi Arabia in the energy and mining sectors and looks forward to benefiting from the Kingdom’s vast hydrocarbon potential.
Speaking on the sidelines of his participation in the Future Minerals Forum hosted in Riyadh, the minister said the timing of the event is ideal given the pivotal stage the world is going through and the rising demand for vital minerals amid ongoing technological development.
He noted that the conference represents a vital platform for discussing opportunities to establish new mines and mobilize the capital needed to operate them, particularly as production from existing mines declines and price volatility increases due to global conflicts, making international cooperation an urgent necessity for the stability of this vital sector.
Regarding bilateral relations, Pervaiz stressed that ties between Riyadh and Islamabad have reached unprecedented levels of strength and depth, citing the numerous meetings between Prime Minister Shehbaz Sharif and Crown Prince Mohammed bin Salman, which he said have exceeded 12 since Sharif took office three years ago.
He added that there is a clear governmental mandate for working groups in both countries to build a comprehensive framework for economic cooperation, with a particular focus on the mining sector, which he described as one of the main pillars of future projects currently under review.
The minister said Pakistan is expecting to host a high-level Saudi delegation at the Pakistan Minerals Investment Forum 2026, scheduled for April, noting that the event is expected to see the signing of several agreements and memoranda of understanding aimed at advancing cooperation in geological studies and mining sector development.
He added that work is underway with the Saudi side to implement tangible projects on the ground, strengthening the existing partnership, which spans multiple areas, including ongoing defense cooperation, further consolidating the two countries’ position as strategic partners in the region.
