Oil ex­tends re­bound on weak dol­lar, eas­ing Brexit fears

Pakistan Observer - - ECONOMY WATCH -

SIN­GA­PORE—Oil prices ex­tended gains in Asia Mon­day on the back of a weaker US dol­lar and eas­ing fears of a UK exit from the Euro­pean Union. The US dol­lar fell for the fourth day in a row on Mon­day, trad­ing lower against most ma­jor currencies, mak­ing the dol­lar-priced com­mod­ity cheaper for those us­ing other currencies and push­ing up de­mand. At about 0245 GMT, US bench­mark West Texas In­ter­me­di­ate for July de­liv­ery was up 44 cents, or 0.92 per­cent, trad­ing at $48.42 a bar­rel.

In­ter­na­tional bench­mark North Sea Brent for Au­gust de­liv­ery was up 35 cents, or 0.71 per­cent, trad­ing at $49.52 a bar­rel. The com­mod­ity is re­cov­er­ing af­ter see­ing sharp spikes and dips in the past fort­night on a jit­tery mar­ket. US crude last week plunged nearly 10 per­cent in six days af­ter hit­ting 11-month highs the pre­vi­ous week while Euro­pean Brent had given up nine per­cent. “The big­gest fac­tor this week may well be cur­rency, par­tic­u­larly given the un­cer­tainty around the Brexit vote,” Michael McCarthy, a chief strate­gist at CMC Mar­kets in Syd­ney, told Bloomberg News.

“The widely shared view that the mar­ket will be bal­anced by the end of the year is keep­ing a bit of sup­port in place. Oil above $50 will tempt the highly agile US shale pro­duc­ers back into ac­tion, so that should keep a cap on prices,” he said. Mar­kets had been wor­ried about a po­ten­tial Brexit—which the IMF and Bank of Eng­land have warned might lead to a re­ces­sion with global spillovers—when polls showed the Leave camp gain­ing mo­men­tum.—AFP

LA­HORE: Shah­mir Khan Ni­azi, from Bea­con­house School Sys­tem, re­ceiv­ing award for 4th po­si­tion at In­tel ISEF 2016 in the cat­e­gory En­ergy Phys­i­cal. Faiq Sadiq Chief In­ter­nal Au­di­tor, Habib Bank Lim­ited (right to left) and Ha­roon Ra­heem Ed­u­ca­tion Ad­vi­sor–USAID Pun­jab, Lila Ram Project Man­age­ment Spe­cial­ist (Ed­u­ca­tion) USAID are present on the occasion.

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