Web Desk

<span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">ISLAMABAD:&nbsp;<span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Global oil prices fell to a two-week low on Thursday after an unexpected build in U.S. crude inventories and growing speculation that OPEC+ may raise output in their meeting on Sunday.&nbsp;<span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Eight core members, often referred to as the &lsquo;Voluntary Eight&rsquo; (V8), are now weighing an output increase starting in October.&nbsp;<span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">The group includes Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman.&nbsp;<span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">A final decision is expected at the OPEC+ meeting on Sunday.<span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">This comes after their earlier cut production by 2.2 million barrels per day (bpd), with the United Arab Emirates reducing a further 300,000 bpd to stabilize the market.<span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">According to the U.S. Energy Information Administration (EIA) crude oil stockpiles rose by 2.4 million barrels last week, which was unprecedented for analysts who were expecting a 2.0 million barrel draw.&nbsp;<span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">The American Petroleum Institute (API) also reported an increase but only by 0.6 million barrels.&nbsp;<span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Brent crude for October delivery closed at $68.12 a barrel on Friday, down 50 cents or 0.73%. The November contract, which is now the main one traders follow, slipped 53 cents or 0.78% to end the day at $67.45, as reported by Reuters.&nbsp;<span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Eight core members are now considering an output increase in October, Reuters reported, with a final decision expected at the alliance&rsquo;s Sunday meeting.<span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Such a move would represent a shift from their strategy adopted in April.<span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Analysts say the decision to increase quotas was aimed at regaining market share, following diplomatic pressure from United States President Donald Trump to reduce energy prices.<span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Back in January, Trump pushed for oil price reductions during the annual World Economic Forum in Davos, Switzerland.<span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Past Comments&nbsp;<span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">U.S. President Donald Trump called on Saudi Arabia and OPEC to reduce oil prices during the annual World Economic Forum in Davos.&nbsp;<span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Speaking to global leaders and business executives, Trump said he would formally request the oil-producing alliance to take action on energy costs.<span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">&quot;I&#39;m also going to ask Saudi Arabia and OPEC to bring down the cost of oil,&quot; Trump announced during the session. He added, &quot;You&#39;ve got to bring down the oil price, you&#39;ve got to end that war. They should have done it long ago; they&#39;re very responsible actually, to a certain extent, for what&#39;s taken place.&quot;<span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Trump&rsquo;s comments come amid rising geopolitical tensions and ongoing efforts by the United States to curb Russian oil exports.&nbsp;<span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">His administration has recently imposed tariffs on countries like India for purchasing Russian crude and urged European allies to reduce energy ties with Moscow.

Middle East

OPEC+ may raise output in October, with Saudi Arabia, Russia and others weighing a shift from earlier cuts; oil fell as U.S. inventories rose ahead of Sunday's meeting.


Articles tagged with "OPEC"

OPEC+ expected to raise production levels in major strategic shift