Friday, December 20 2024

Oil edges higher on falling US inventories
Oil prices rose slightly on Thursday, supported by falling US crude inventories, though gains were limited after the US Federal Reserve signalled it would slow the pace of interest rate cuts in 2025, a move that could dampen economic growth, reduce fuel demand and strengthen the dollar. Brent crude futures rose 44 cents, or 0.60% to $73.83 a barrel by 1414 GMT. US West Texas Intermediate (WTI) crude for January delivery gained 68 cents, or 0.96%, to $71.26. The more active WTI contract for February rose 52 cents to $70.54. "The bottom line for oil is the longer the Fed stays on pause, the stronger the US dollar. This tends to generate headwinds for commodities like oil," said Harry Tchilinguirian at Onyx Capital Group. Official data from the Energy Information Administration on Wednesday showed US crude stocks fell by 934,000 barrels in the week to December 13.
Related news categories: business misc oilgas-exploration oilgas-marketing

Senate panel blames govt for gas crisis
The government came under criticism during a meeting of a Senate panel on Thursday over the gas crisis, with speakers identifying poor coordination and mismanagement for oversupply in the network, on one hand, and shortage of supplies to consumers on the other. The panel decided to reconvene the session with the petroleum minister in attendance. The meeting of the Senate Standing Committee on Petroleum, presided over by Senator Umar Farooq, also expressed displeasure over the delay in filling a vacant slot of director general for petroleum concession (DGPC). The DGPC deals with exploration and development of oil and gas in the country. The meeting had been called to discuss the gas shortfall and exploration activities to meet the country’s rising demand for gas.
Related news categories: business economic-indicators oilgas-marketing

Thursday, December 19 2024

Oil price cut must benefit consumers
The federal government has asked provincial administrations to take action against petroleum product dealers for failing to pass on the full impact of price reduction to consumers. The federal government has slashed petroleum prices several times but the entire benefit has not reached consumers owing to the poor administrative control of provinces. Now, the government has asked provinces to take strict administrative measures in this regard. The issue was taken up in a recent meeting of the National Price Monitoring Committee (NPMC). Speaking at the huddle, the Ministry of Planning, Development and Special Initiatives secretary, while recalling the decisions taken in the previous NPMC meeting, urged provincial governments to implement the decisions, particularly regarding the reduction in petroleum product prices and the administrative steps required in that regard.
Related news categories: business economic-indicators oilgas-marketing

Wednesday, December 18 2024

Ogra proposes up to 26pc hike in gas prices
The Oil & Gas Regulatory Authority (Ogra) has asked the federal government to increase gas rates by up to 26pc to generate about Rs847.33bn during the current fiscal year. In its two separate determinations forwarded to the federal government on Tuesday, the regulator said it worked out an increase of Rs142.45 per million British thermal units or MMBTU in the average price for Sui Northern Gas Pipelines Limited (SNGPL) consumers in Punjab, Khyber Pakhtunkhwa and other northern areas. The proposed hike for Sui Southern Gas Company Limited (SSGCL) consumers in Sindh and Balochistan was Rs361 per unit. The regulator advised that each SNGPL consumer be charged a flat rate of Rs1,778.35 per unit (instead of Rs1,635.90 per unit) and that of SSGCL Rs1,762.51 per unit (from Rs1,401.25 per unit at present) from February 1.
Related news categories: business economic-indicators oilgas-marketing

Tuesday, December 17 2024

OGDCL revives heavy oil well in Chakwal
The Oil and Gas Development Company Limited (OGDCL) has successfully revived a heavy oil well at its Rajian Oil Field in Chakwal district, boosting production by 1,000 barrels per day (bpd). According to a press release, the Rajian-3A well, suspended in 2020 due to formation challenges, was restored as part of OGDCL's optimisation efforts. Located within the Gujar Khan Exploration License, the field's output has now increased from 1,500bpd to 2,500bpd. OGDCL implemented an Electrical Submersible Pump (ESP) system in the Chorgali-Sakessar and Tobra formations to resume production at Rajian-3A, which reaches a depth of 3,652 meters. This well is the first of 11 targeted under an optimisation plan that includes workover jobs and advanced artificial lift systems.
Related news categories: business economic-indicators oilgas-exploration oilgas-marketing psx stock-exchanges
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