ISLAMABAD: Oil prices edged up in a limited range on Thursday as prices are taking time to digest demand catalysts belonging to the United States and China. As of 1305 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.43 (+0.56 percent) to reach $77.41. The West Texas Intermediate (WTI), the main oil benchmark for North America, went up by $0.48 (+0.66 percent) to $73.01. Similarly, the price of Russian Sokol increased by $1.35 (+2.08 percent) to $66.14. Arab Light prices witnessed an increase of $1.12 (+1.44 percent) to reach $78.72 a barrel. TLTP
However, the price for Opec Basket decreased by $1.62 (-2.10 percent) to $75.47. 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.
Crude oil prices inched higher as the Energy Information Administration (EIA) reported an inventory decline of 500,000 barrels for the week to June 9. This compared with an inventory build of 4.5 million barrels for the previous week, which pushed prices lower.
China’s data showed that crude oil imports jumped in May by 12.2 percent year-on-year and by 17.4 percent compared to April. China imported a total of 12.11 million barrels per day (bpd) of crude in May, data from the General Administration of Customs showed, as refiners returned from maintenance and moved to stockpile crude.
The building of crude inventories has supported crude oil imports and demand despite the mixed macroeconomic data coming out of China in recent weeks.
Internationally, the US dollar edged lower on Thursday as traders assessed the odds of a rate hike by the Federal Reserve next week. In the broader currency market, the US dollar dipped in early Asia trade, as traders pared back their expectations of a rate hike at next week’s FOMC meeting. As oil is traded in the US dollar, a weaker dollar favours rise in oil prices.
