ISLAMABAD
Crude oil prices climbed over 5 percent on Tuesday amid increase in China’s demand following relaxation in Shanghai’s Covid-19 restrictions as the oil market is having some of its roughest weeks in modern history.
As of 1415 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $5.60 (+5.69 percent) to reach 104.08 a barrel. The West Texas Intermediate (WTI), the main oil benchmark for North America, jumped to $99.64 a barrel, up by $5.12 (+5.43 percent).
The price for Opec basket was recorded at $100.08 a barrel with a decrease of 0.97 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 $107.20 a barrel with an increase of 1.74 percent and the price of Russian Sokol jumped to $93.62 a barrel with a 2.03 percent increase.
Shanghai said on Monday that more than 7,000 residential units have been classified as lower-risk areas after reporting no new infections for 14 days and districts have since been announcing which compounds can be opened up.
On the other hand, the Organisation of the Petroleum Exporting Countries (OPEC), meanwhile, warned that it would be impossible to replace 7 million barrels per day (bpd) of Russian oil and other liquids exports lost in the event of sanctions or voluntary actions. The European Union has yet to agree to any embargo on Russian oil, but some foreign ministers said the option is on the table.
The Opec on Tuesday lowered its Russian liquids production forecast by 530,000 barrels per day (bpd) for 2022, but also cut its forecast for growth in world oil demand, citing the impact of Russia’s invasion of Ukraine, rising inflation as crude prices soar and the resurgence of the Omicron coronavirus variant in China.
