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Oil prices higher as Canada fire forces more ouput cutbacks

11:22 AM | 7 May, 2016
Oil prices higher as Canada fire forces more ouput cutbacks
NEW YORK (APP) - Crude prices rose on Friday as Canadian oil sands producers cut back more output due to the massive Canadian wildfire surrounding Fort McMurray, Alberta.

The spreading fire seems not to have directly damaged oil sands mining sites, but evacuations of more than 100,000 in the area have forced companies to slash production.

“It is now estimated that up to one million barrels per day of Canadian production has been taken offline,” said Matt Smith of ClipperData.

US benchmark West Texas Intermediate (delivery in June) rose 34 cents to $44.66 a barrel on the New York Mercantile Exchange.

In London, Brent North Sea crude (for July) closed at $45.37 a barrel, up 36 cents from Thursday’s settlement.

WTI lost nearly three percent over the course of the week, punctuating four straight weekly gains, as Brent shed more than four percent.

Smith noted that Canada produces about four million barrels a day of crude oil, and roughly 80 percent of it is produced in Alberta, where output is largely from oil sands. Most of that is piped to the US market.

“While infrastructure is yet to be damaged, the evacuation of staff in combination with the precautionary closure of pipelines has driven the drop in production,” Smith said.

Tim Evans of Citi Futures said mounting production losses in Alberta continued to give the market key near-term support, but that could evaporate swiftly if output is restored quickly.

“Traders may not want the risk that the fire threat diminishes by Monday, allowing output to recover,” he noted.

Militants’ attack on an offshore Chevron facility in Nigeria, Africa’s largest oil producer, also drew traders attention.

“The drop in Nigerian oil production is also getting some play in the press, although we note that the decline wasn’t enough in April to do more than limit the increase in overall OPEC supply,” said Tim Evans of Citi Futures.

The author is working as Editor Digital Media for Daily Pakistan and can be reached @ItsSarfrazAli.

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Currency Rates in Pakistan - Pakistani rupee exchange rate against US dollar, Euro, Pound and Riyal - 24 Feb 2024

Pakistani currency remains largely stable against US dollar and other currencies in the open market on February 24, 2024.

US Dollar rate in Pakistan

In the open market, the US dollar was being quoted at 279.5 for buying and 282.55 for selling.

On Saturday, Euro stands at 302  for buying and 305 for selling while British Pound rate stands at 352.5 for buying, and 356 for selling.

UAE Dirham AED hovers at 76.1 whereas the Saudi Riyal saw slight increase, with new rates at 74.35.

Today’s currency exchange rates in Pakistan - 24 February 2024

Source: Forex Association of Pakistan. (last update 09:00 AM)
Currency Symbol Buying Selling
US Dollar USD 279.5 282.55
Euro EUR 302 305
UK Pound Sterling GBP 352.5 356
U.A.E Dirham AED 76.1 76.8
Saudi Riyal SAR 74.35 75.1
Australian Dollar AUD 181 183
Bahrain Dinar BHD 743.88 751.88
Canadian Dollar CAD 207 209
China Yuan CNY 38.89 39.29
Danish Krone DKK 40.38 40.78
Hong Kong Dollar HKD 35.76 36.11
Indian Rupee INR 3.37 3.48
Japanese Yen JPY 2.10 2.18
Kuwaiti Dinar KWD 908.79 917.79
Malaysian Ringgit MYR 58.6 59.2
New Zealand Dollar NZD 171.68 173.68
Norwegians Krone NOK 26.43 26.73
Omani Riyal OMR 726.53 734.53
Qatari Riyal QAR 76.76 77.46
Singapore Dollar SGD 207 209
Swedish Korona SEK 26.53 26.83
Swiss Franc CHF 317.87 320.37
Thai Bhat THB 7.79 7.94

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