Oil Higher in Asian Trade
SINGAPORE: Oil rose in Asian trade on Monday, with investor mood upbeat that the global economy was over the worst of the slump, analysts said.
In particular, a stronger-than-expected set of US corporate earnings has fuelled hopes that the world’s largest economy was on the mend from a recession that started late last year, they said.
New York’s main contract, light sweet crude for September delivery, put on 39 cents to 68.44 dollars a barrel.
Brent North Sea crude for September delivery was 38 cents firmer at 70.70 dollars.
“People concluded that Asia seems to have turned the corner — now the US is also thought to be recovering,” said Tony Nunan, a Tokyo-based manager with Mitsubishi Corp’s international petroleum business unit.
In Asia, a strong 7.9 percent surge in second quarter growth from China’s economy has bolstered hopes that the region is also starting to shake off the US-led global slump.
After the United States, China is the number two energy user in the world.
Crude prices have surged about 10 dollars in New York over the past two weeks, energised by strong US corporate earnings and economic data suggesting the US and other key economies are starting to recover.
However, Phil Flynn of PFG Best Research cautioned that the rise in oil prices was not supported by economic fundamentals.
“Oil has ignored bearish supply and demand fundamentals as the fundamentals of expectations of an improving economy seem to be a bit more exciting,” Flynn said.
“After this pop, oil will fall hard.”
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Oil Higher in Asian Trade
Pakistan Forex reserves fall to $11.85 billion
Lahore, Pakistan: Foreign exchange reserves fell by $394 million in the week that ended July 18 to $11.85 billion, the State Bank of Pakistan said on Thursday.
The SBP’s reserves eased to $8.43 billion from $8.86 billion a week earlier, while reserves held by commercial banks rose to $3.42 billion from the previous week’s $3.38 billion, the SBP said in a statement.
Foreign reserves hit a record high of $16.5 billion in October 2007 but fell steadily to $6.6 billion by November of last year, largely because of a soaring import bill.
Pakistan agreed in November to an International Monetary Fund emergency loan package of $7.6 billion to avert a balance of payments crisis and shore up reserves.
The fund recently reviewed the country’s performance under the deal, and its board is set to meet next month to decide on a third loan tranche of roughly $875 million.
The country has also requested about $4 billion in additional financing from the IMF as “insurance” against the economic crisis.
Original post:
Pakistan Forex reserves fall to $11.85 billion
