Pakistan eyes ‘profit’ amid oil slump

Taking advantage of the historic slump in the international markets, the Petroleum Division has come up with a suggestion of signing deals with oil companies for a period of one or two years with the fixed-price formula at the current rate. 

According to 24NewsHD TV channel, the suggestion was made to the Ministry of Finance and Planning which had started deliberations on that as the government wants to take advantage of the low oil prices.

The Petroleum Division officials say Pakistan could benefit from the situation by inking agreements based upon the current prices.

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Apart from one or two-year deals for oil, they are also calling for a similar approach in the case of LNG imports from Qatar.

The officials are of the opinion that the deals could be signed by keeping the division’s storage capacity in mind.

However, Pakistan would need the required amount on an urgent basis if such deals were to be signed.

Meanwhile, there are signs of improvement in the oil markets as the Financial Times in a latest report said the rebound in oil prices gained momentum following the mammoth sell-off as the prospect of renewed tensions in the Middle East helped offset fears of a collapse in global demand due to coronavirus.

Prices for the US benchmark at one point turned negative for the first time in history, meaning producers were forced to pay buyers to take oil off their hands.

But in Asia trading on Thursday, Brent continued its recovery with the international oil market adding 8.2 percent to $22.04. A day earlier Brent fell below $20 for the first time since 1999. West Texas Intermediate rose 9.5 per cent to $15.09 a barrel.