Oil prices drop as US inventories jump fuels demand worries

PROFIT REUTERS he build was much larger than the 1.2 million-barrel rise that nine analysts polled by Reuters had expected, potentially pointing to a drop in fuel demand.

Oil prices extends losses on Wednesday as a much bigger-than-expected surge in the U.S. crude inventories and expectations of further interest rate hikes sparked concerns over the prospect of weaker fuel demand and economic recession.

Brent crude futures slid 72 cents, or 0.8%, to $84.86 per barrel by 0442 GMT, while U.S. West Texas Intermediate (WTI) crude futures shed 68 cents, or 0.9% to $78.38.

U.S. crude inventories rose by about 10.5 million barrels in the week ended Feb. 10, according to market sources citing American Petroleum Institute (API) figures on Tuesday.

Gasoline stocks rose by about 846,000 barrels, while distillate stocks rose by about 1.7 million barrels, according to the sources, who spoke on condition of anonymity.

“The API data put mounting pressure on the oil market as this would be the eighth week of stocks building … Tepid demand in the U.S. market would continue to depress oil prices in the near term,” said analysts from Haitong Futures. Official government inventory estimates are due at 10:30 a.m. EST (0330 GMT) on Wednesday.

Meanwhile, a Federal Reserve official said on Tuesday the U.S. central bank will need to keep gradually raising interest rates to beat inflation after data showed that U.S consumer prices accelerated in January.

“We now expect the FOMC (Federal Open Market Committee) will extend tightening through Q2 and

Reuters mail seeking comment.

Axis Bank, ICICI Bank, HDFC Bank and ICICI Securities Primary Dealership are the arrangers for the bond issue.

FUNDRAISING BURST: HDFC has so far raised 534.14 billion rupees through private placement of bonds in the current fiscal, already the highest it has raised in any financial year.

If the issue goes through, HDFC’s fundraising would be higher by 50% as compared to 2021-22, when it had raised 500 billion rupees, according to data from information service provider Prime Database. The company’s anticipate 25 bp (basis point) rate increases at the May and June FOMC meetings, in addition to the March hike that we already expected,” said analysts from ANZ bank. fundraising via private placement stood below 250 billion rupees in 2013-14. HDFC is raising funds as it would help them meet capital requirements after the upcoming merger with HDFC Bank, bankers said.

Also weighing on crude prices was a U.S. Department of Energy (DOE) announcement this week that it would sell 26 million barrels of oil from the nation’s strategic reserve, which is already at its lowest level in roughly four decades.

Prices drew some support from the Organization of the Petroleum Exporting Countries (OPEC) raising its 2023 global oil demand growth forecast in its first upward revision for months, on China’s reopening, and trimmed supply forecasts for major non-OPEC producers, indicating a tighter market.

Global oil demand will rise this year by 2.32 million barrels per day (bpd), or 2.3%, OPEC said, raising the forecast from February by 100,000 bpd.

“It is comparatively easier for the NBFC to raise funds as compared to a bank fundraising, and hence HDFC, which has sufficient investor comfort, opted for such large size,” one of the bankers added. This could be the last issue from the company before the merger, which is likely to be completed in the next financial year, bankers added.

ECP protest: LHC adjourns hearing of Imran plea for protective bail till today

LAHORE STAFF REPORT

The Lahore High Court (LHC) on Wednesday adjourned hearing of a petition filed by Pakistan Tehreek-e-Insaf (PTI) chairman Imran Khan for protective bail, in a case registered against him over protests outside the Election Commission of Pakistan’s (ECP) office, till February 16. Justice Tariq Saleem Sheikh heard the petition filed by the PTI chairman for protective bail in the ECP protest case. During the proceedings, Imran Khan’s counsel requested the court to grant protective bail to his client on medical grounds, saying that an Islamabad anti-terrorism court dismissed his pre-arrest bail petition due to non-appearance. He submitted that the PTI chairman wanted to appear before the relevant court but the doctors had restrained him from walking for three weeks. However, the court observed that as per law, it was necessary for the accused to appear before the court for grant of protective bail, adding that if the PTI chairman had a problem, then he could come to the court in an ambulance.