ISLAMABAD
Crude oil prices extended gains on Friday amid concerns that the Israel-Gaza war may escalate into a regional conflict that could disrupt crude supplies.
As of 1110 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $1.15 (+1.24 percent) to reach $93.53 a barrel. Brent has gained more than 10 per cent since Hamas, which rules Gaza, launched an unprecedented assault on Israel on October 7. The West Texas Intermediate (WTI), the main oil benchmark for North America, went up by $1.23 (+1.38 percent) to $90.60 a barrel.
Similarly, the price of Russian Sokol increased by $1.61 (+1.91 percent) to $85.87. Arab Light prices witnessed an increase of $1.50 (+1.58 percent) to reach $96.17 a barrel. On the other hand, the price for Opec Basket increased to $94.46 a barrel with an increase of $1.81 (+1.95 percent). 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.
In the Middle East, a US warship operating in the Red Sea on Thursday intercepted several drones and missiles launched by Iran-backed Houthi rebels in Yemen and were possibly headed towards targets in Israel. Washington is on additional alert for activity by Iran-backed groups as regional tensions are heightened by the Israel-Gaza war.
Meanwhile, an increase in Venezuelan production and exports could also help ease the tight global oil supply. On Wednesday, the United States lifted sanctions on Venezuela’s oil industry after the Nicolas Maduro government reached a deal with the opposition that could see elections held next year. The US issued a six-month general license temporarily authorizing transactions involving the oil and gas sector in Venezuela. The license will be renewed only if Venezuela meets its commitments under the so-called electoral roadmap, the US Treasury noted.
The license, valid until April 18, 2024, authorizes the production, lifting, sale, and exportation of oil or gas from Venezuela, and the provision of related goods and services, as well as payment of invoices for goods or services related to oil or gas sector operations in Venezuela. Authorization is also granted to new investment in oil or gas in Venezuela and to the delivery of oil and gas from Venezuela to creditors of the government of Venezuela, including creditors of PdVSA entities, for the purpose of debt repayment.
