Oil steadied in early Asian trade on Tuesday as indications that producer alliance Opec+ sought to avoid a collapse in prices, along with a slight softening in the US dollar, tempered an earlier selloff.

Brent crude futures rose 26 cents, or 0.3 per cent, to $84.32 per barrel by 0033 GMT, while US West Texas Intermediate (WTI) crude futures were up 19 cents at $76.90 per barrel. Both benchmarks sank by about $2 a barrel on Monday, largely on US dollar strength.

Iraq Oil Minister Ihsan Abdul Jabbar on Monday said the Organisation of the Petroleum Exporting Countries (Opec) and allies including Russia, known as Opec+, were monitoring the oil price situation, wanting to maintain balance in the markets.

“We don’t want a sharp increase in oil prices or a collapse,” he said in an interview on Iraqi state TV.

Abdul Jabbar’s comments helped to support oil, which settled at nine-month lows, largely on the surging US dollar.

Opec+ has boosted output this year after record cuts put in place in 2020 due to demand destruction caused by the Covid-19 pandemic. But in recent months, the organisation failed to meet its planned output increases.

An easing of the US dollar, which trades inversely with oil, helped to support prices. But while the US dollar weakened in post-settlement trade, earlier on Monday it hit its strongest level since May 2002.

Uncertainty over supply disruptions caused by the Russia-Ukraine war, along with tightening monetary policy around the world that threatens economic downturns, also kept prices from moving higher.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Al Qadir ruling
Updated 18 Jan, 2025

Al Qadir ruling

One wonders whether the case is as closed as PTI’s critics would have one believe.
Atlantic tragedy
18 Jan, 2025

Atlantic tragedy

AS reports emerge of another migrant boat sinking — this time in the Atlantic off the coast of Western Sahara — ...
Cheap promises?
18 Jan, 2025

Cheap promises?

TALK is cheap. Can electricity also be? The government has recently announced that Pakistan will benefit from the...
Never again
Updated 17 Jan, 2025

Never again

The Gaza genocide has also revealed the utter helplessness of the Palestinian Authority in projecting Palestine’s case globally.
World Bank loan
17 Jan, 2025

World Bank loan

THAT the World Bank will give $20bn to Pakistan in the next 10 years to address some of the country’s most acute...
India’s dangerous game
17 Jan, 2025

India’s dangerous game

THE latest inflammatory remarks by India’s military brass about Pakistan mark a troubling departure from the...