ISLAMABAD
Crude oil futures edged up on Tuesday for the third day in a row amid positive outlook for fuel demand.
At 1340 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.12 (+0.14 percent) to reach $83.55 a barrel. Similarly, the US West Texas Intermediate (WTI) reached $81.96 a barrel, up by $0.03 (+0.04 percent).
The price for Opec Basket was recorded at $80.11 a barrel with a decrease of 1.61 percent, Arab Light was available at $82.99 with 0.44 percent decrease, and the price of Russian Sokol slipped to $83.85 with a decrease of 0.39 percent.
The US Congress passed the $1 trillion infrastructure bill and better-than-expected Chinese exports helped paint a picture of a more expansive global economy. Moreover, the opening of the United States increased prospects for more fuel demand as travel began.
Oil demand is likely to grow in the wake of the $1 trillion infrastructure bill passed by Congress late Friday, as the infrastructure bill screams bullish for oil.
On the other hand, despite a tighter market, the US crude inventories are expected to have risen a third straight week which will possibly help cap further gains.
Global oil-market conditions became more bullish following last week’s meeting of the Organisation of the Petroleum Exporting Countries and its allies, which saw the producers defy pressure to increase the size of planned production increases. OPEC+ crude-oil production rose by 480,000 barrels per day in October, but only half of the group’s members actually lifted output last month. The 19 OPEC+ members with production quotas were a combined 600,000 barrels per day below their allocations for the month, putting compliance at 113.21 percent. Meanwhile, a decision by Saudi state-run oil company Saudi Aramco to boost crude prices on exports added to the bullish tone.
