Business

Oil prices broadly steady amid rising US stockpiles

Published

2 years ago

Farwa

LONDON: Oil prices were broadly steady on Wednesday as market participants were pulled in different directions by an unexpected build in US crude and fuel inventories, global economic uncertainty and China reopening its economy.

Moving in and out of the negative territory, Brent crude futures were up 53 cents, or 0.7%, at $80.63 a barrel by 0921 GMT US West Texas Intermediate (WTI) crude futures rose 41 cents, or 0.6%, to $75.53 a barrel.

Both contracts rose on Monday and Tuesday, rebounding from a sharp selloff in the first week of 2023.

US crude oil stockpiles jumped by 14.9m barrels in the week ended January 6, sources said, citing data from the American Petroleum Institute (API). At the same time, distillate stocks rose by about 1.1m barrels.

Analysts polled by Reuters had expected crude stocks to fall. Traders will be looking out for inventory data from the US Energy Information Administration typically due 1530 GMT.

The oil market has been pulled lower by worries that sharply higher interest rate hikes to tame inflation would trigger a recession and curtail fuel demand. US inflation data is due on Thursday.

If inflation comes in below expectations that would drive the dollar down, analysts said. A weaker dollar can boost oil demand as it makes the commodity cheaper for buyers holding other currencies.

Prices have not jumped but gained some support from hopes for fuel demand growth in China, the world’s second-largest oil consumer after the US after it eased its COVID-19 curbs and increased crude import quotas by 20%.

“It is dawning on market players that China’s return to normality won’t be enough to propel oil back above $100/bbl on a sustained basis,” said PVM analyst Stephen Brennock.

“What is required is an improvement in global growth. Yet the outlook for the world economy is constrained by high inflation and tightening credit conditions.”

Business

IMF does not list Pakistan till September 18.

Published

21 hours ago

Farwa

Pakistan’s 37-month Extended Fund Facility Arrangement (EFF) of around $7 billion is not included in the IMF schedule for the executive board meeting, which is scheduled for September 9, 13, and 18. This information is based on the Fund’s website.

A deal on the 37-month loan package was agreed in July between Pakistan and the IMF.

The Fund’s Executive Board must approve the new programme before it can be implemented, but it should allow Pakistan to “cement macroeconomic stability and create conditions for stronger, more inclusive, and resilient growth,” the statement reads.

“The programme aims to capitalise on the hard-won macroeconomic stability achieved over the past year by furthering efforts to strengthen public finances, reduce inflation, rebuild external buffers, and remove economic distortions to spur private sector-led growth,” the IMF statement stated, citing Nathan Porter, the head of the Fund’s mission to Pakistan.

Notably, the administration is allegedly trying to get important allies like China, Saudi Arabia, and the United Arab Emirates (UAE) to roll over $12 billion in loans.

Business

It is anticipated that 150 ships would arrive at Gwadar by the year 2045, allowing the port to handle fifty percent of all imports.

Published

5 days ago

Farwa

In an effort to strengthen the port’s economic importance, the Federal Government has made the decision to direct fifty percent of all imports from the public sector to Gwadar Port.

By taking this action, which has the backing of the Special Investment Facilitation Council, the port’s financial situation is going to be improved.

The Cabinet will be presented with a summary of imports through Gwadar by the Ministry of Maritime Affairs, which will take place after Prime Minister Shehbaz Sharif’s recent trip to China.

When the next Cabinet Meeting takes place, Ahsan Iqbal, the Federal Minister for Planning, Development, and Special Initiatives, will examine the Chinese offer for the Karachi to Hyderabad Section of the ML-1 Project and bring it to the Cabinet.

Company preparations for the Shanghai International Import Expo, which will take place in November 2024, are being made by the Board of Investment and the Ministry of Commerce of Pakistan.

One of the most important aspects of the China-Pakistan Economic Corridor is the Gwadar port, which serves as a significant commerce route connecting China, the Middle East, Africa, and Europe. At this time, the Gwadar Port is able to accommodate two huge ships, and by the year 2045, it is anticipated that it would be able to handle up to 150 ships.

By developing the Gwadar Port, regional connectivity would be improved, employment will be created, and international investment will be attracted.

Business

The price of gold in Pakistan has experienced a significant surge.

Published

5 days ago

Farwa

Gold prices in Pakistan surged significantly on Thursday following two consecutive days of decline, with the price per tola rising by Rs2,000 to reach Rs262,100. This increase was in accordance with the downward trend in international market values.

The All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) reported that the price of 10 grams of 24-karat gold rose by Rs1,714, reaching Rs224,708.

Conversely, the world gold market experienced an upward trajectory. According to the APGJSA, the global price of gold surged to $2,503 per ounce following a $22 gain during the trading session.

The local market experienced a significant decline in silver prices, decreasing from Rs50 to Rs2,900 per tola after a prolonged period.

The local market’s gold prices remain subject to the ever-changing dynamics of the international market, as well as domestic considerations such as currency exchange rates and domestic demand.