ISLAMABAD
Oil prices edged lower on Tuesday, snapping a three-day winning streak ahead of issuance of initial US crude inventory data, as there were expectations of another drawdown.
As of 1350 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, shed $0.49 (-0.66 percent) to reach $73.50 a barrel. The West Texas Intermediate (WTI), the main oil benchmark for North America, went down by $0.66 (-0.95 percent) to $68.71 a barrel.
However, the price of Russian Sokol increased by $0.47 (+0.72 percent) to $66.11. Arab Light prices witnessed an increase of $0.13 (+0.17 percent) to reach $77.81 a barrel. On the contrary, the price for Opec Basket went down by $3.10 (-4.01 percent) to $74.14. 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.
The American Petroleum Institute will release initial data on US crude stocks, expected to show a drawdown for the second week in a row.
Prices were also pressured by fading concerns about Russian supplies as calm returned to the political stage in the country following the Wagner mutiny. The mutiny by the Wagner militia was squashed very quickly, with Russian oil shipments going uninterrupted.
The crude oil prices remained volatile during the day as they began trade with a gain as supply worries returned to the table. China’s oil demand has been somewhat of a disappointment compared to bullish manufacturing outlooks that have failed to materialize in full. While China’s oil demand has indeed been on the rise, manufacturing activity in the world’s top oil importer has been lackluster compared to projections. This has pulled down crude oil prices.
