ISLAMABAD
Crude Oil prices continued to rise for a second consecutive session on Wednesday, fueled by planned supply cuts from major oil producers and optimistic expectations of higher demand in the developing world.
As of 1320 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.44 (+0.55 percent) to reach $79.84 a barrel. The West Texas Intermediate (WTI), the main oil benchmark for North America, went up by $0.56 (+0.75 percent) to $75.39 a barrel.
Similarly, the price of Russian Sokol increased by $1.16 (+1.68 percent) to $70.20. Arab Light prices witnessed an increase of $1.40 (+1.73 percent) to reach $82.38 a barrel. Following suit, the price for Opec Basket increased by $1.53 (+1.97 percent) to $79.09. 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.
Oil prices crept higher on Wednesday in a market caught between expectations supply cuts by the world’s biggest fuel exporters will drive prices higher and concerns global economic weakness will sap demand. Despite prevailing global economic concerns, the oil market seems poised to remain tight.
Saudi Arabia and its fellow OPEC+ producers may not have lifted the international crude oil futures with their production cuts, but the reduced supply from the world’s top crude exporter has sent the prices of sour crude rallying in recent weeks.
In early June, the OPEC+ producers decided to keep the current cuts until the end of 2024, while OPEC’s top producer, Saudi Arabia, said it would voluntarily reduce its production by 1 million bpd in July to around 9 million bpd. Last week, Saudi Arabia said it would extend its unilateral 1 million bpd production cut into August and raised the prices of some of its grades – all of which are sour – for loading for Asia in August. With a lower supply of Saudi and other Middle Eastern sour crude, buyers are looking for alternatives in other parts of the world, driving up sour crude prices.
