ISLAMABAD
Crude oil prices rose on Wednesday on growing concerns that the Israel-Gaza war could escalate and potentially affect crude supplies from the region.
As of 1320 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.83 (+0.92 percent) to reach $90.73 a barrel. The West Texas Intermediate (WTI), the main oil benchmark for North America, went up by $0.68 (+0.78 percent) to $87.34 a barrel.
Similarly, the price of Russian Sokol increased by $1.65 (+1.99 percent) to $84.47. Arab Light prices witnessed an increase of $1.63 (+1.74 percent) to reach $95.07 a barrel. On the other hand, the price for Opec Basket increased to $92.23 a barrel with a gain of $1.61 (+1.76 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.
The fresh spike in oil came after the hospital bombing in Gaza, and as focus turned to China’s gross domestic product and activity data. The Middle East is facing a new bout of geopolitical uncertainty as the war between Israel and Hamas, which governs the Gaza Strip, continues to rage. More than 4,000 people have been killed in the conflict, which has entered its 12th day. More than 3,000 have been killed in Gaza alone as the siege of the blockaded enclave continues.
Energy traders are unsure how far the conflict will drag on and the impact it could have on crude supplies from the region, home to some of the world’s top oil-exporting nations.
\ Tension in Gaza will remain a major factor influencing prices in the short term, overshadowing even the potential return of Venezuelan oil to the market, as the situation continues to deteriorate in the Middle East.
Meanwhile, China’s economy, the world’s second largest, grew faster-than-expected in the third quarter, official data on Wednesday showed. The country’s gross domestic product grew 4.9 per cent year on year in July-September, according to the National Bureau of Statistics.
