ISLAMABAD
Crude oil prices rose one percent on Thursday after falling by about 3 percent the previous day amid a deteriorating demand outlook.
As of 1050 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.83 (+1.04 percent) to reach $80.37 a barrel. The West Texas Intermediate (WTI), the main oil benchmark for North America, went up by $0.75 (+1 percent) to $76.08 a barrel. The price gains likely reflect an attempt for prices to stabilize after the strong sell-off in previous days.
Brent settled 2.54 percent lower at $79.54 a barrel while WTI closed 2.64 percent down at $75.33 a barrel on Wednesday. Both benchmarks have dropped by about 7 percent over the past two days, despite the extension of voluntary output cuts of a combined 1.3 million barrels per day by Saudi Arabia and Russia until the end of the year.
However, the price of Russian Sokol decreased by $1.73 (-2.27 percent) to $74.45. Arab Light prices witnessed a decrease of $1.90 (-2.20 percent) to reach $84.30 a barrel. On the other hand, the price for Opec Basket decreased to $86.50 a barrel with a decrease of $2.36 (-2.66 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.
US crude stocks, an indicator of a fuel demand, rose by 11.9 million barrels in the week that ended on November 3, according to the American Petroleum Institute. The US Energy Information Administration has postponed the publication of their weekly oil stocks data, typically released on Wednesdays, until November 15.
Meanwhile, China’s crude imports rose by about 14 percent in October from a year earlier amid higher domestic demand, according to the General Administration of Customs. However, overall exports from the world’s top crude importer and second-largest economy shrank by 6.4 percent annually last month, the data showed.
However, China is expected to hit its annual gross domestic product growth target this year, the country’s central bank governor said on Wednesday. China’s GDP grew faster than expected in the third quarter, official data showed last month. Its economy expanded by 4.9 per cent, year on year, in the July-September period, compared with market expectations of a growth of 4.4 per cent.
The central bank will maintain reasonable credit growth, keep liquidity reasonably ample and “improve the efficiency of fund utilisation”, People’s Bank of China Governor Pan Gongsheng said in a speech. Beijing, which is aiming for a GDP growth rate of 5 percent this year, has announced a string of stimulus measures in recent months after the country’s post-Covid economic recovery lost momentum in the second quarter mainly due to a deepening property slump and weak consumer spending.
Meanwhile, the Opec+ group of oil producers is set to meet in Vienna on November 26 to set output targets for the first half of 2024. Saudi Arabia and Russia are expected to extend their voluntary production cuts into the new year if the downward pressure on oil prices continues.
