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Oil drops on ample supply, Iran nuclear talks

09:21 AM | 17 Mar, 2015
Oil drops on ample supply, Iran nuclear talks
LONDON (APP) - Brent crude oil fell to around $53 a barrel on Monday, its lowest for more than a month, on rising global inventories and signs of a possible nuclear deal with Tehran that could allow more Iranian oil exports.

Western powers are hoping for concessions from Tehran that could help clinch an agreement in nuclear talks this week after the United States and European powers voiced a willingness to compromise on suspending U.N. sanctions.

Brent LCOc1 for April dropped $1.84 to $52.83, its lowest since early February, before recovering some ground to trade around $53.00, down $1.67, by 1430 GMT.

U.S. crude fell to $43.18, its lowest since March 2009, before rebounding to around $43.35.

Both benchmark crude futures contracts have fallen over the last two weeks on mounting evidence of a global glut that is filling oil inventories rapidly.

World stockpiles are rising at a rate of 1.6 million barrels per day (bpd), French bank Societe Generale estimated and it forecast the build will accelerate to 1.7 million bpd in the second quarter.

"Weakness hit the oil markets last week, and we expect it to continue," Societe Generale oil analyst Michael Wittner said.

"The arithmetic works out to a combined build in crude oil and refined products of approximately 200 million barrels in March-June. Any way you slice it, this is bearish for prices."

Libya's oil production has risen to around 490,000 bpd, an industry source said on Monday, double the country's output a few weeks ago.

China has been taking advantage of low prices to build up its strategic petroleum reserves, but analysts say new spare capacity will only become available later this year, denting near-term import needs.

Lower oil prices have encouraged exploration and production companies to cut back on the number of oil and gas drilling rigs employed in the United States and elsewhere, but this trend will take some time to translate into lower output.

Goldman Sachs analysts said in a research report that a falling U.S. rig count would only bring slightly lower production in the second quarter of this year.

Meanwhile, any sharp increase in production or exports from Iran would be very negative for oil markets.

"The prospect of an increase in Iranian oil sales as part of a new agreement in the next couple of months will only exacerbate OPEC oversupply, supporting our bearish outlook," Barclays said.

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

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Pakistani rupee exchange rate against US dollar, Euro, Pound and Riyal - 22 February 2024

Pakistani rupee remains stable against US dollar and other currencies in the open market on February 22, 2024 (Thursday)

US Dollar rate in Pakistan

In the open market, the US dollar was being quoted at 279.6 for buying and 282.4 for selling.

Euro comes down to 300.2 for buying and 303.2 for selling while British Pound rate stands at 350.6 for buying, and 354.1 for selling.

UAE Dirham AED hovers at 76.2 whereas the Saudi Riyal saw slight increase, with new rates at 74.45.

Today’s currency exchange rates in Pakistan - 22 Feb 2024

Source: Forex Association of Pakistan. (last update 09:00 AM)
Currency Symbol Buying Selling
US Dollar USD 279.6 282.4
Euro EUR 300.2 303.2
UK Pound Sterling GBP 350.6 354.1
U.A.E Dirham AED 76.2 76.95
Saudi Riyal SAR 74.45 75.2
Australian Dollar AUD 181.15 183.15
Bahrain Dinar BHD 743.32 751.32
Canadian Dollar CAD 207.15 209.15
China Yuan CNY 38.89 39.29
Danish Krone DKK 40.38 40.78
Hong Kong Dollar HKD 35.74 36.09
Indian Rupee INR 3.37 3.48
Japanese Yen JPY 2.10 2.18
Kuwaiti Dinar KWD 902.41 911.41
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 725.96 733.96
Qatari Riyal QAR 76.76 77.46
Singapore Dollar SGD 207.1 209.1
Swedish Korona SEK 26.53 26.83
Swiss Franc CHF 316.9 319.4
Thai Bhat THB 7.93 8.08

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