ISLAMABAD
Oil prices rose on Friday over rising demand euphoria after US crude and gasoline oil inventories recorded huge falls although the lack of consensus at the latest OPEC+ meeting is leaving oil markets without direction.
At 1130 GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained 0.86 percent to reach $74.76 a barrel. Similarly, the US West Texas Intermediate (WTI) reached $73.79, up 1.17 percent.
The price for Opec Basket was recorded at $73.58 a barrel with 3.11 percent decrease, Arab Light was available at $74.28 a barrel with 1.60 percent increase, while the price of Russian Sokol reached $73.32 after gaining 1.68 percent.
The upward price movement came in response to the hefty drop in US crude and gasoline inventories, which are considered solid signs of a demand rise in the world’s largest oil consumer.
Crude oil inventories decreased by 6.9 million barrels last week relative to the market expectation of a 3.9 million-barrel draw while gasoline inventories also recorded a massive drop by 6.1 million barrels to 235.5 million barrels over that period.
The dispute among OPEC+ members occurred after the UAE objected to the group’s plans to boost output by 400,000 barrels per day (bpd) from August to December. The group also wants to prolong the term of its production cut agreement, which was inked in October 2018, from April to December 2022.
The rapid spread of the COVID-19 Delta variant and the re-emergence of strict measures in some regions raised concerns about economic activity while also fuelling fears on the demand side.
