Oil falls on fears inflation may dent fuel demand growth

News Image

By MG News | October 13, 2021 at 09:32 AM GMT+05:00

0:00

October 13, 2021: Oil prices dropped on Wednesday, after a mixed finish in the previous session, amid worries that soaring coal and natural gas prices in China, India and Europe will stoke inflation and slow global growth, reducing oil demand.

A strong U.S. dollar, trading near a one-year high, also weighed on oil prices, as it makes oil more expensive for those holding other currencies.

U.S. West Texas Intermediate (WTI) crude futures fell 71 cents, or 0.9%, to $79.93 a barrel at 0247 GMT after gaining 12 cents on Tuesday.

Brent crude futures fell 70 cents, or 0.8%, to $82.72 a barrel, extending a 23 cent loss on Tuesday.

The International Monetary Fund on Tuesday cut its growth outlooks for the United States and other major economies on worries supply chain disruptions and cost pressures are holding back the global economic recovery from the coronavirus pandemic.

Commonwealth Bank analysts highlighted the IMF's concern that "momentum has weakened and uncertainty has increased".

However, oil watchers are still focused on whether soaring gas and coal prices will lead to more demand for oil products for power generation.

"There are growing expectations that the high prices for gas and thermal coal are likely to boost demand for alternative fuels such as diesel and fuel oil," ANZ Research analysts said in a note.

The market is also awaiting U.S. oil inventory data, delayed by a day following the Columbus Day holiday on Monday.

Analysts polled by Reuters estimate U.S. crude inventories rose by 100,000 barrels in the week to Oct. 8, which would mark a third straight week of increases.

They also estimated that gasoline stockpiles rose about 100,000 barrels, while distillate inventories, which include diesel, heating oil and jet fuel, dropped by about 1 million barrels.

Data from the American Petroleum Institute, an industry group, is due at 4:30 p.m. EDT (2030 GMT) on Wednesday and from the U.S. Energy Information Administration on Thursday.

Reuters

Related News

Name Price/Vol %Chg/NChg
KSE100 125,627.31
258.99M
1.00%
1248.25
ALLSHR 78,584.71
1,142.41M
1.16%
904.89
KSE30 38,153.79
69.25M
0.63%
238.06
KMI30 184,886.50
91.38M
0.01%
13.72
KMIALLSHR 53,763.81
554.57M
0.54%
290.61
BKTi 31,921.68
33.15M
1.78%
557.94
OGTi 27,773.98
9.65M
-0.40%
-112.21
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 107,585.00 107,860.00
107,555.00
-650.00
-0.60%
BRENT CRUDE 66.63 67.20
65.92
-0.17
-0.25%
RICHARDS BAY COAL MONTHLY 97.00 97.00
97.00
1.05
1.09%
ROTTERDAM COAL MONTHLY 107.65 107.65
105.85
1.25
1.17%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 64.95 65.02
64.83
-0.16
-0.25%
SUGAR #11 WORLD 16.19 16.74
16.14
-0.52
-3.11%

Chart of the Day


Latest News
June 30, 2025 at 11:55 PM GMT+05:00

TRG: Dominos Tumbling for the Management


June 30, 2025 at 10:08 PM GMT+05:00

SBP’s March FX intervention stands at $860m



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg