ISLAMABAD
Crude oil prices surged around 6 percent on Thursday after the International Energy Agency (IEA) report warned of tight energy markets following sanctions against Russia.
As of 1235 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $5.87 (+5.99 percent) to reach 103.89 a barrel.
Brent crude prices are expected to average $105.22 per barrel this year, the EIA said in its latest Short-Term Energy Outlook (STEO) last week, significantly raising its February forecast of $82.87. In its March STEO last week, the EIA said it expects Brent Crude prices to average $117 a barrel in March, $116 for the second quarter of this year, and $102 per barrel in the second half of 2022.
The West Texas Intermediate (WTI), the main oil benchmark for North America, jumped to $100.50 a barrel, up by $5.46 (+5.74 percent). The WTI crude is set to average $113 a barrel this month and $112 per barrel for the second quarter of 2022, IEA said.
OPEC daily basket price stood at $104.06 a barrel Wednesday, 16 March 2022, compared with $102.86 the previous day
The price for Opec basket was recorded at $104.06 a barrel with an increase of 1.15 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.
Arab Light was available at $100.63 a barrel with a decrease of 2.05 percent and the price of Russian Sokol slipped to $81.80 a barrel with a 2.50 percent decrease.
The EIA said that oil prices will remain higher than $100 per barrel in the coming months, reflecting the geopolitical risks from Russia’s war in Ukraine and the tight energy markets.
The EIA’s oil price forecast, however, “is subject to heightened levels of uncertainty due to various factors, including Russia’s further invasion of Ukraine, government-issued limitations on energy imports from Russia, Russian petroleum production, and global crude oil demand,” the administration said.
