ISLAMABAD
Crude oil prices surged in a volatile session on Wednesday, after going down for three consecutive days. The falling oil prices increased amid supply concerns, easing worries about slowing Chinese demand due to re-emergence of Covid-19 cases, and signs of progress in the Russia-Ukraine peace talks.
As of 1350 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.86 (+0.86 percent) to reach 100.77 a barrel. Brent traded as high as $139.13 a barrel last week.
The West Texas Intermediate (WTI), the main oil benchmark for North America, jumped to $97.80 a barrel, up by $1.36 (+1.41 percent). The contract hit $130.50 a barrel last week.
The price for Opec basket was recorded at $102.86 a barrel with a decrease of 7.06 percent. The OPEC Reference Basket of Crudes (ORB) is made up of Saharan Blend, Girassol, Djeno, Zafiro, Rabi Light, Iran Heavy, Basra Light, Kuwait Export, Es Sider, Bonny Light, Arab Light, Murban and Merey. Arab Light was available at $102.74 a barrel with an increase of 1.78 percent and the price of Russian Sokol jumped to $83.90 a barrel with a 3.27 percent increase.
The Ukrainian and Russian negotiators have given their most upbeat assessments after negotiations, suggesting there could be positive results within days. Over the past week, crude prices have plunged more than 20 percent, reversing much of the surge after Russia’s invasion of Ukraine added turmoil to an already-tight energy market.
The investors also weighed on a coordinated international release of crude inventories against Russian supply disruptions. Concerns over tightening supplies come as significant oil and gas companies have announced plans to exit Russian operations and joint ventures.
Buyers of Russian oil are also facing difficulty over payments, and vessel availability as Western sanctions in response to the invasion of Ukraine take hold.
