ISLAMABAD: Oil prices rose on Tuesday after hitting the three-month low, as US inflation cooled in May and OPEC leaves its 2023 demand forecast unchanged. As of 1345 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $2.26 (+3.15 percent) to reach $74.10. The West Texas Intermediate (WTI), the main oil benchmark for North America, went up by $2.09 (+3.11 percent) to $69.22. However, the price of Russian Sokol decreased by $1.46 (-2.26 percent) to $63.26. Arab Light prices witnessed a decrease of $1.54 (-2.02 percent) to reach $74381 a barrel. Similarly, the price for Opec Basket decreased by $0.70 (-0.91 percent) to $75.85. 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. TLTP
The Consumer Price Index in the US climbed 4 percent in the year through May, slightly less than the 4.1 percent economists had expected and the slowest pace in more than two years. In April, it had climbed 4.9 percent.
Earlier, crude markets were nursing their worst loss in nearly two weeks as concerns over sluggish demand, worsening economic conditions and a potential boost in Iran-driven supply largely countered the prospect of tighter production after a Saudi cut last week.
Fears of worsening demand kept traders cautious over buying into crude, following a string of weak economic readings from major economies in the past few months. Concerns over China have weighed heavily on oil prices in recent months, as investors questioned whether a post-Covid economic rebound was running out of steam.
On the other hand, the potential of a US-Iran nuclear deal also kept traders cautious over increased supply, especially as Iran’s supreme leader signaled some openness to reaching an agreement. Still, both Tehran and Washington denied recent reports that a deal was close.
