ISLAMABAD
Crude oil prices inched up on Thursday after a drop in US crude stocks while a stronger dollar kept the bulls in check.
As of 1155 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.36 (+0.45 percent) to reach $79.82 a barrel. The West Texas Intermediate (WTI), the main oil benchmark for North America, went up by $0.11 (+0.15 percent) to $75.46a barrel.
The price of Russian Sokol decreased by $0.06 (-0.08 percent) to $71.04. Arab Light prices witnessed a decrease of $0.35 (-0.42 percent) to reach $83.11 a barrel. On the other hand, the price for Opec Basket decreased by $1.73 (-2.11 percent) to $80.33. 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.
US crude inventories, an indicator of fuel demand, fell by about 700,000 barrels to 457.4 million barrels in the week ending on July 14, according to the US Energy Information Administration.
Petroleum stocks decreased by 1.1 million barrels last week, while distillate stocks rose slightly, the EIA data showed.
The US Dollar Index – a measure of the value of the greenback against a weighted basket of major currencies – has gained 0.32 percent over the past week. It was last down 0.18 percent at 100.10. A stronger dollar makes oil more expensive for holders of other currencies, hurting crude demand.
Sluggish economic growth in China, the world’s biggest crude importer, has weighed on oil futures this week. China’s GDP expanded by an annual 6.3 percent from April to June, after growing by 4.5 percent in the previous three months, as the country reopened after removing Covid-19 restrictions, according to the National Bureau of Statistics. Quarterly, GDP growth was only 0.8 per cent between April and June, compared with the previous three months. Weaker-than-expected growth in China has led the market to believe in a situation of oversupply.
