ISLAMABAD: Crude oil prices rebounded on Friday from losses of more than one percent the previous day as investors turned cautiously optimistic over the fading risk of a US debt default amid signs of progress on talks. As of 1220 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $1.13 (+1.49 percent) to reach $76.99. The West Texas Intermediate (WTI), the main oil benchmark for North America, went up by $1.06 (+1.48 percent) to $72.92. The price of Russian Sokol decreased by $0.08 (-0.12 percent) to $67.19. Similarly, Arab Light prices witnessed a decrease of $0.12 (-0.15 percent) to reach $77.63 a barrel. The price for Opec Basket increased by $0.77 (+1.03 percent) to $75.22. 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. Crude oil prices looked set to record their first weekly gain after going down for four straight weeks as sentiment about future demand improves amid signs that there may be progress on the debt ceiling negotiations in the US Congress. President Biden and House Speaker Kevin McCarthy Thursday said they would negotiate directly on lifting the debt ceiling, sparking hopes that a default would be avoided. TLTP
In addition to debt ceiling optimism, prices got some support from the fact that driving season is around the corner with demand expected to pick up in accordance with usual seasonal variation. Some additional support was also provided by the US Department of Energy when it announced it planned to buy three million barrels of oil for the strategic petroleum reserve.
