Oil prices up in Asian trade

Enterprise - - International News -

Oil prices rose in Asia but gains were capped by an In­ter­na­tional En­ergy Agency (IEA) re­port show­ing that the global crude over­sup­ply will per­sist un­til next year.

US bench­mark West Texas In­ter­me­di­ate for Novem­ber de­liv­ery was up 0.28 per­cent to $46.79 in af­ter­noon trade fol­low­ing a volatile morn­ing ses­sion.

Brent crude for Novem­ber climbed 0.16 per­cent to $49.32 a bar­rel.

“The fun­da­men­tals of oil still have not changed,” Daniel Ang, an in­vest­ment an­a­lyst with Phillip Fu­tures in Sin­ga­pore.

“The mar­ket re­mains in over­sup­ply and with im­pend­ing Ira­nian crude pos­si­bly en­ter­ing the mar­ket in Novem­ber, this is re­ally putting a lot of bear­ish­ness in the mar­ket.”

Iran is ex­pected to start ramp­ing up oil ex­ports by late Novem­ber af­ter a po­lit­i­cal agree­ment with ma­jor world pow­ers in July to curb its nu­clear pro­gramme in ex­change for a lift­ing of crip­pling eco­nomic sanc­tions.

De­mand is strug­gling to cope with the over­sup­ply amid a slow­down in the global econ­omy this year and is ex­pected to con­tinue into next year.

The monthly IEA re­port pro­jected that world de­mand growth would slow from 1.8 mil­lion bar­rels per day in 2015 to 1.2 mil­lion bpd in 2016.

“A pro­jected marked slow­down in de­mand growth next year and the an­tic­i­pated ar­rival of ad­di­tional Ira­nian bar­rels -- should in­ter­na­tional sanc­tions be eased -- are likely to keep the mar­ket over­sup­plied through 2016,” IEA said.

The mar­ket is also wait­ing for the re­lease of US re­tail sales num­bers to fur­ther gauge the health of the Amer­i­can econ­omy.

The re­tail fig­ures could im­pact the strength of the US dol­lar which could also af­fect the move­ment of dol­larpriced crude oil.

A weaker dol­lar makes oil cheaper on the in­ter­na­tional mar­ket, while a stronger green­back makes the com­mod­ity more ex­pen­sive.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.