ISLAMABAD
Crude oil prices started the new week on a strong note amid supply concerns, while the avoidance of a US government shutdown over the weekend gave some relief to the market.
As of 1300 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.56 (+0.61 percent) to reach $92.76 a barrel. The West Texas Intermediate (WTI), the main oil benchmark for North America, went up by $0.32 (+0.35 percent) to $91.11 a barrel.
However, the price of Russian Sokol decreased by $1.92 (-2.23 percent) to $84.28. Arab Light prices witnessed a decrease of $2.34 (-2.42 percent) to reach $94.53 a barrel. On the other hand, the price for Opec Basket increased to $97.48 with an increase of $2.17 (+2.28 percent). 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.
Oil prices rose up to 29 percent in the third quarter of the current year as OPEC+ production cuts squeezed global crude supply.
Front-month Brent November futures settled up about 27 percent in the third quarter. The US WTI crude went up 29pc in the quarter. With oil futures inching closer to $100 a barrel, many investors took profits on the rally given ongoing macroeconomic concerns.
Earlier, oil prices posted a weekly loss on concerns that interest rate increases by the US Federal Reserve could dampen fuel demand. Fed Chairman Jerome Powell said the central bank was almost done raising interest rates but new projections from the regulator suggest that rates could be held higher for a prolonged period. “We are prepared to raise rates further if appropriate and we intend to hold policy at a restrictive level until we’re confident that inflation is moving down sustainability towards our objective,” Powell added.
Meanwhile on the local front, the caretaker government slashed the petrol and high-speed diesel (HSD) prices by Rs8 and Rs11 per litre to Rs323.38 and Rs318.18 per litre, respectively, according to the notification issued by the Ministry of Finance. The new prices of petroleum products for the fortnight started last Sunday.
