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Oil prices sink in Asia on strong Dollar, output fears

10:54 AM | 29 Aug, 2016
Oil prices sink in Asia on strong Dollar, output fears
SINGAPORE (APP) - Oil prices tumbled in Asia Monday on a strong dollar and after key OPEC producers downplayed the prospects of limiting output at a meeting next month.

Iranian oil minister Bijan Zanganeh on Friday said his country wanted its share of the crude market to return to levels seen before Western nuclear sanctions were imposed on it 13 years ago.

The comments suggest Tehran might not join possible efforts by OPEC and Russia to cap production at the gathering in Algeria.

Earlier, Saudi Arabia s energy minister Khalid Al-Falih also downplayed hopes for a cut in production.

At around 0320 GMT, US benchmark West Texas Intermediate was down 53 cents, or 1.11 percent, at $47.11 and Brent fell 52 cents, or 1.04 percent, at $49.40.

"Oil prices came under pressure following media reports of the Saudi oil minister's comments that there was limited possibility of any agreement for major intervention during the planned informal meeting of OPEC members next month," said EY oil and gas analyst Sanjeev Gupta.

Saudi Arabia, the biggest producer in the Organization of the Petroleum Exporting Countries, advocated an output freeze earlier this year but no deal was reached after Iran, which is just emerging from sanctions, refused to join.

The strictures, aimed at curbing Tehran's nuclear programme, were lifted in January.

"After a week of yoyo-ing on OPEC chatter and geopolitical concerns and with the jury still out on an OPEC production freeze, the near-term fundamentals along with supply concerns, will dominate price action on oil this week," said Stephen Innes, a senior trader at OANDA.

Gupta said comments by Fed chair Janet Yellen on Friday signalling the possibility of a US interest rate hike within this year "boosted the dollar index and applied pressure on crude prices".

Analysts said Yellen s remarks raised the likelihood that the Fed will lift rates by the end of the year.

A strong dollar typically dents demand for oil as it becomes more expensive for anyone with weaker currencies.

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

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Pakistani rupee exchange rate to US Dollar, Euro, Pound, Dirham, and Riyal - 27 Feb 2024

Pakistani currency remains largely stable against US dollar in the open market on February 27, 2024 (Tuesday).

US Dollar rate in Pakistan

In the open market, the US dollar was being quoted at 279.4 for buying and 282.3 for selling.

Euro currently stands at 303 for buying and 306 for selling while British Pound rate stands at 351.5 for buying, and 355 for selling.

UAE Dirham AED hovers at 76 whereas the Saudi Riyal saw slight increase, with new rates at 76.7.

Today’s currency exchange rates in Pakistan - 27 Feb 2024

Source: Forex Association of Pakistan. (last update 09:00 AM)
Currency Symbol Buying Selling
US Dollar USD 279.4 282.3
Euro EUR 303 306
UK Pound Sterling GBP 351.5 355
U.A.E Dirham AED 76 76.7
Saudi Riyal SAR 74.2 75
Australian Dollar AUD 181 183
Bahrain Dinar BHD 742.91 750.91
Canadian Dollar CAD 207 209
China Yuan CNY 38.82 39.22
Danish Krone DKK 40.56 40.96
Hong Kong Dollar HKD 35.7 36.05
Indian Rupee INR 3.37 3.48
Japanese Yen JPY 2.10 2.18
Kuwaiti Dinar KWD 905.46 914.46
Malaysian Ringgit MYR 58.49 59.09
New Zealand Dollar NZD 173.05 175.05
Norwegians Krone NOK 26.36
 
26.66
Omani Riyal OMR 725.54 733.54
Qatari Riyal QAR 76.74 77.44
Singapore Dollar SGD 207 209
Swedish Korona SEK 27.04 27.34
Swiss Franc CHF 317 319.5
Thai Bhat THB 7.76 7.91

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