ISLAMABAD: Crude oil prices fell to a five-month low on Wednesday amid concerns of slow demand growth in China and a stronger US dollar despite the Opec+ cuts announced last week. As of 1155 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, shed $0.62 (-0.80 percent) to reach $76.58 a barrel. The West Texas Intermediate (WTI), the main oil benchmark for North America, went down by $0.64 (-0.88 percent) to $71.68 a barrel. On Tuesday, Brent ended down 1.1 per cent at $77.20 a barrel, while WTI settled 1 per cent lower at $72.32, with both benchmarks hitting their lowest level since July 6. TLTP
Brent has fallen by more than 7 per cent over the previous four sessions.
Similarly, the price of Russian Sokol decreased by $0.41 (-0.56 percent) to $72.31. Arab Light prices witnessed a decrease of $0.87 (-1.06 percent) to reach $81.58 a barrel. On the other hand, the price for Opec Basket increased to $79.69 a barrel with a dip of $2.90 (-3.51 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.
Last week, Opec+ members extended their voluntary oil output reductions until the end of the first quarter of next year amid concerns over future fuel demand. Saudi Arabia, the world’s largest oil exporter, will keep its voluntary output cut of one million barrels per day until the end of March.
“The kingdom’s production will be approximately nine million bpd … and to support market stability, these additional reduction quantities will be restored gradually, according to market conditions,” the Saudi Press Agency reported, citing an energy ministry source.
Russia said it would deepen its voluntary oil production cut to 500,000 bpd and extend it until the end of the first quarter of next year.
