ISLAMABAD
Crude oil prices were slightly lower on Thursday, even after a surprise US crude stock drop and the US Federal Reserve sticking to its outlook on rate cuts.
As of 1155 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, shed $0.40 (-0.47 percent) to reach $85.55 a barrel. Similarly, the West Texas Intermediate (WTI), the main oil benchmark for North America, went down by $0.40 (-0.49 percent) to $80.87 a barrel.
On the other hand, the price of Arab Light increased by $0.01 (+0.01 percent) to reach $87.66 a barrel. However, the price of Russian Sokol decreased by $0.10 (-0.13 percent) to $79.88. On the other hand, the price for Opec Basket remained unchanged at $86.52 a barrel.
Brent ended the last week higher by 3.97 percent, increasing to $85.34 from $82.08 a barrel. WTI also closed the week higher to $81.04 from $78.01 a barrel, registering a weekly increase of 3.88 percent.
Crude inventories in the United States, the world’s biggest oil consumer, fell for a second week, the U.S. Energy Information Administration (EIA) reported on Wednesday.
Investors also took heart from the U.S. central bank, which held interest rates in a range of 5.25% to 5.50% on Wednesday, but kept to an outlook for three rate cuts this year. Lower rates could boost economic growth, in good news for oil sales. A stronger dollar makes oil more expensive for investors holding other currencies, dampening demand.
Earlier, oil prices gained as Ukraine’s attacks on Russian refineries stoked fears of a supply disruption. The strikes on Russian refineries added $2-$3 per barrel of risk premium to crude last week, which remains in place at present.
On Saturday, one of the strikes sparked a brief fire at the Slavyansk refinery in Kasnodar, which processes 8.5 million metric tons of crude oil a year, or 170,000 barrels per day. On Wednesday, Ukraine’s drone strikes resulted in a fire at Rosneft’s largest refinery.
The incident stood out as one of the most severe attacks on Russia’s energy sector in recent months.
