Oil prices to remain low as Iraq, Iran reluctant to cap oil production
Karachi—KSE-100 Index gained yet another 269 points reaching close to historic milestone of 43000 levels as it closed in green at 42,901 levels amid market volumes of 496 million shares here on Wednesday.
Exciting reports coming from defence exhibition Ideas 2016 and positive corporate performance helped the index to move towards all time high levels.
PACE Pakistan was the volume leader of the day with a trade volume of 53 million shares, while PIAA and Bank of Pu8njab were second and third volumes leaders in respective order with a trading activity of 35 million and 21 million shares in that order.
Meanwhile the international oil prices which had risen in early trading to US$49.17/bbl in the previous session on hopes that OPEC and non-OPEC members might reach a deal to limit oil production next week.
However, the gains disappeared when Iraq’s foreign minister said that OPEC should allow them to continue raising output with no restriction. Furthermore, Iran, Libya and Nigeria argue that they should be exempted because their output has been hit by conflict or sanctions.
Additionally, API data showed a fall in crude oil stocks by 1.3mnbbl for the week. Investors will look for EIA’s crude oil inventories data later in the day for price directions.