ISLAMABAD
\nCrude oil prices fell on Friday following the US Federal Reserve keeping interest rates unchanged at 5.25-5.5 percent a day earlier.
\nAs of 1220 hours GMT, Brent, the international benchmark for two-thirds of the world\u2019s oil, shed $1.32 (-1.58 percent) to reach $82.35 a barrel. Similarly, the West Texas Intermediate (WTI), the main oil benchmark for North America, went down by $1.36 (-1.73 percent) to $77.25 a barrel.
\nOn the other hand, the price of Arab Light increased by $0.76 (+0.92 percent) to reach $83.53 a barrel. Similarly, the price of Russian Sokol increased by $0.64 (+0.85 percent) to $76.22. However, the price for Opec Basket decreased to $81.99 a barrel with a dip of $0.83 (-1 percent).
\nThe US Federal Reserve officials are generally unsure about when they will begin cutting interest rates, although most warned against starting too soon, the minutes from their January 30-31 meeting showed. \u201cParticipants highlighted the uncertainty associated with how long a restrictive monetary policy stance would need to be maintained,\u201d the Federal Open Market Committee\u2019s minutes read. Lower interest rates support economic growth, which fuels crude oil demand.
\nOn the other hand, the US crude inventories, an indicator of fuel demand, rose by 3.5 million barrels in the week that ended on February 16, according to the US Energy Information Administration. Petroleum stocks fell by 300,000 barrels last week, while distillate inventories dropped by 4 million barrels, the EIA data showed.
\nMeanwhile, attacks on commercial ships in the Red Sea by Yemen\u2019s Houthi rebels have added to the risk premium for oil futures. The futures curve in crude oil prices has become even more strongly downward sloped. Normally, a premium for immediate delivery versus later delivery indicates market tightness.
\nThe Opec+ alliance, which includes Russia, has implemented voluntary supply cuts of 2.2 million barrels per day until the end of the first quarter. This reduction is in addition to the 3.6 million bpd of output reductions agreed upon earlier. The production of Opec\u2019s 12 member countries decreased by 350,000 bpd from December to 26.24 million bpd, the group said in its February oil market report.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD Crude oil prices fell on Friday following the US Federal Reserve keeping interest rates unchanged at 5.25-5.5 percent a day earlier. As of 1220 hours GMT, Brent, the international benchmark for two-thirds of the world\u2019s oil, shed $1.32 (-1.58 percent) to reach $82.35 a barrel. Similarly, the West Texas Intermediate (WTI), the main oil […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-389105","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n