ISLAMABAD
Crude oil prices continued edging lower for the second consecutive session on Wednesday due to demand concerns.
As of 1250 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, shed $0.38 (-0.48 percent) to reach $79.17 a barrel. Similarly, the West Texas Intermediate (WTI), the main oil benchmark for North America, went down by $0.29 (-0.39 percent) to $74.08 a barrel.
Both Brent and WTI ended the last week higher by 0.34 percent 1 percent, respectively. 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 $0.46 (-0.62 percent) to $73.26. Arab Light prices witnessed a decrease of $0.43 (-0.53 percent) to reach $80.21 a barrel. Similarly, the price for Opec Basket decreased to $79.70 a barrel with a dip of $0.57 (-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.
Oil futures remain volatile as uncertainty persists around several supply and demand indicators. Traders weigh up economic prospects, interest rates, OPEC+ and the risk of supply disruptions as a result of events in the Red Sea. Tensions also rose in the Middle East, where the US and British forces carried out a second joint round of strikes on Houthi positions in Yemen on Monday night.
Meanwhile, China’s central bank will cut the amount of cash that banks must hold as reserves from February 5, governor Pan Gongsheng said on Wednesday, the first such cut for the year as policymakers extend efforts to shore up a fragile economic recovery. The move will free up 1 trillion yuan ($139.45 billion) to the market, he added.
Meanwhile, US crude stocks fell by 6.67 million barrels in the week ended January 19, according to media reports. Gasoline inventories, however, increased by 7.2 million barrels, stoking concerns over fuel demand in the world’s top oil consumer. TLTP
