ISLAMABAD: Oil prices rose for the second straight day on Wednesday amid supply concerns as the Russia-Ukraine peace talks hit a dead end and China hinted at using its monetary policy to stimulate growth. As of 1320 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $1.72 (+1.64 percent) to reach 106.36 a barrel. The West Texas Intermediate (WTI), the main oil benchmark for North America, jumped to $102 a barrel, up by $1.40 (+1.39 percent). The price for Opec basket was recorded at $102.41 a barrel with an increase of 2.33 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 $110.06 a barrel with an increase of 2.67 percent and the price of Russian Sokol jumped to $96.49 a barrel with a 3.07 percent increase. TLTP
Crude extended gains 0n Wednesday after a 6 percent surge in the previous session. China’s cabinet said it would cut banks’ reserve requirement ratio in a further sign that the country’s central bank is likely to add monetary stimulus to boost the economy. The IEA cut its forecast for the world’s crude needs this year after Beijing reimposed lockdowns to contain the spread of Covid-19.
That came a day after Russia said peace talks with Ukraine are “at a dead end.” Even before the war, the oil market was robust as the recovery in demand from Covid-19 helped drain inventories. With the war in Europe rippling through global markets and fanning inflation, governments recently announced plans to tap strategic oil stockpiles.
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.
