ISLAMABAD
Crude oil prices remained on a roller coaster ride on Friday amid mixed sentiment. As of 1120 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.22 (+0.29 percent) to reach $75.20. The West Texas Intermediate (WTI), the main oil benchmark for North America, went up by $0.29 (+o.41 percent) to $71.13. Both benchmarks remained in the green and red zones throughout the session.
During early trade on Friday, oil prices extended the losses of the previous two days as concerns about the Chinese and US economies continue to weigh on market sentiment, dragging prices down. Both contracts are likely to register loss for the fourth straight week, as last week Brent closed at $75.30 while WTI finished at $71.34. If this happens, a fourth consecutive week of losses would mark the longest weekly losing streak for oil since November 2021.
The price of Russian Sokol decreased by $2.51 (-3.71 percent) to $65.20. Similarly, Arab Light prices witnessed a decrease of $2.67 (-3.4 percent) to reach $75.87 a barrel.
The price for Opec Basket decreased by $0.23 (-0.3 percent) to $76.31. 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.
Concerns about the US economy, another build in US inventories, and signs of a patchy economic recovery in China have weighed on the petroleum complex this week, overshadowing signals that the United States could begin buying crude soon to fill the Strategic Petroleum Reserve (SPR). The impasse on raising the US debt ceiling and a subsequent looming debt default have also dragged down prices and sentiment in the oil market.
On the other hand, concerns about oil demand in the near future outweighed signals from US Energy Secretary Jennifer Granholm that the administration could start repurchasing crude to fill the SPR once the June sale from the SPR is completed.
“That congressionally mandated sale of 26 million barrels will be completed by June, and it’s at that point where we will flip the switch and then seek to purchase,” Granholm said during a hearing in the US House of Representatives.
