ISLAMABAD
Crude oil prices increased on Tuesday due to escalating conflict in the Middle East, stoking fears of suspension of trade and oil flows in the area.
As of 1250 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.71 (+0.91 percent) to reach $78.86 a barrel. Similarly, the West Texas Intermediate (WTI), the main oil benchmark for North America, went up by $0.38 (+0.52 percent) to $73.06 a barrel.
Brent ended last week lower by 0.60 percent, falling to $78.29 a barrel from $78.76 a barrel on a week-on-week, while WTI closed last week down to $72.68 from $73.81 a barrel, registering a weekly decline of 1.53 percent. Both benchmarks shed more than 10 percent in 2023 on a year-on-year basis.
On the other hand, the price of Russian Sokol decreased by $0.41 (-0.57 percent) to $71.72. Arab Light prices witnessed a decrease of $0.47 (-0.59 percent) to reach $78.70 a barrel. However, the price for Opec Basket increased to $80.18 a barrel with an uptick of $1.30 (+1.65 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.
Yemen’s Houthis said on Monday that they will expand their targets in the Red Sea region to include US ships, and that they would keep up attacks after US-led strikes in Yemen. As a result more oil tankers sought to avoid the southern Red Sea.
Meanwhile, Iran said on Tuesday it has launched ballistic missiles at targets in Iraq and Syria in defence of its sovereignty and to counter terrorism.
Earlier, several tanker owners steered clear of the Red Sea and multiple tankers changed course on Friday after the US and Britain launched strikes against Houthi targets in Yemen after the Iran-backed group’s attacks on shipping in response to Israel’s war against Hamas in Gaza. The conflict has also held up at least four liquefied natural gas tankers travelling in the area. TLTP
