ISLAMABAD
Crude oil prices rose following progress in talks over increasing the US debt limit, while the market also weighed conflicting messages on supply from Russia and Saudi Arabia ahead of the next OPEC+ policy meeting.
As of 1325 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.83 (+1.09 percent) to reach $77.09. The West Texas Intermediate (WTI), the main oil benchmark for North America, went up by $0.97 (+1.35 percent) to $72.80.
The price of Russian Sokol decreased by $1.75 (-2.61 percent) to $65.21. Arab Light prices witnessed a decrease of $1.83 (-2.31 percent) to reach $77.41 a barrel.
The price for Opec Basket increased by $1.53 (+2.01 percent) to $77.49. 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.
Fading fear of the US debt default pushed the prices higher. U.S. President Joe Biden and top congressional Republican Kevin McCarthy are closing in on a deal that would raise the government’s $31.4 trillion debt ceiling for two years while capping spending on most items.
Crude Oil has enjoyed a strong bounce to start the week with back-to-back days of gains despite broad based US dollar strength. A report from the International Energy Administration (IEA) also aided the recent bounce in oil prices. The IEA warned that a shortage in oil could materialise in the second half of 2023 as they expect demand to outstrip supply by some 2 million barrels a day.
Oil also rose as traders evaluated a warning from Saudi Energy Minister Prince Abdulaziz bin Salman to short-sellers, offsetting a lack of tangible progress in US debt-limit talks. Saudi Arabia’s top energy official said at Qatar Economic Forum: “I keep advising them that they will be ouching — they did ouch in April”.
