ISLAMABAD: Crude oil prices surged over one percent on Friday following a nearly 5 percent drop in the previous session, with futures set to decline for the fourth straight week as growing crude demand concerns offset prospects of tighter supply. As of 1240 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $1.08 (+1.39 percent) to reach $78.50 a barrel. The West Texas Intermediate (WTI), the main oil benchmark for North America, went up by $0.94 (+1.29 percent) to $73.84 a barrel. Both benchmarks fell in the previous session, as Brent settled 4.63 percent lower at a four-month low of $77.42 a barrel and WTI closed 4.90 percent down at $72.90 a barrel. However, the price of Russian Sokol decreased by $2.65 (-3.53 percent) to $72.43. Arab Light prices witnessed a decrease of $2.81 (-3.31 percent) to reach $82.18 a barrel. On the other hand, the price for Opec Basket decreased to $84.86 a barrel with a dip of $0.61 (-0.71 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. TLTP
New selling emerged after prices failed to reach safer grounds earlier in the week when global stock markets and general risk appetite surged following an unexpected slowdown in US inflation. The oil market focus has instead been turning to the short-term demand outlook, which according to the futures market is showing signs of weakening.
Futures also came under pressure from an unexpected rise in US crude stocks. US crude inventories, an indicator of fuel demand, increased by 3.6 million barrels in the week that ended on November 10, according to the US Energy Information Administration (EIA).
The decline in prices came despite predictions of a tight crude market in the fourth quarter by Opec and the International Energy Agency this week. On Tuesday, the IEA raised its oil demand growth forecast for 2023 and 2024 on record demand in China and “resilient” US crude deliveries. Opec also raised its forecast for oil demand growth for 2023 and said it expected record demand from China and India in the fourth quarter.
