Daily Times

Crude oil prices edged up on Tuesday amid concerns that tensions in the Middle East and Russia’s ongoing invasion of Ukraine could curb global supplies.

As of 1225 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.53 (+0.68 percent) to reach $78.52 a barrel. Similarly, the West Texas Intermediate (WTI), the main oil benchmark for North America, went up by $0.46 (+0.63 percent) to $73.24 a barrel.

Oil futures recorded their biggest weekly loss of over 7 percent since November last week. Brent ended the week lower by $6.22 (-7.44 percent) while WTI closed the week lower by $5.73 (-7.35 percent) on a week-on-week basis. However, oil prices posted the first monthly gain in January since September and WTI and Brent rose 5.86 percent and 6.06 percent, respectively, on a month-on-month basis.

On the other hand, the price of Arab Light inched up by $0.11 (+0.14 percent) to reach $78.87 a barrel. Similarly, the price of Russian Sokol increased by $0.16 (+0.22 percent) to $71.88. However, the price for Opec Basket decreased to $78.61 a barrel with a dip of $1.85 (-2.30 percent). The ceasefire offer, delivered to Hamas last week by Qatari and Egyptian mediators, awaits a reply from freedom fighters who say they want more guarantees to end the four-month-old war. The United States continued its campaign against Iran-backed Houthis in Yemen, whose attacks on shipping vessels have disrupted global oil trading routes. However, demand outlook concerns limited price gains.

According to experts, the signs of de-escalation in the Middle-Eastern crisis are missing and continue to extend some support to ailing oil prices. They said that expectations of “higher for longer” interest rates in the US and elsewhere could cap consumption, along with indications China’s economy continues to struggle.

Meanwhile, the Opec+ said it would keep its oil output policy unchanged. The Opec+ alliance of oil producing countries noted a high compliance rate on existing production cuts at its meeting on Thursday. The group, which has voluntary production cuts of 2 million barrels per day in place until March, said it would “continue to closely assess market conditions” and stands ready “to take additional measures at any time”. The next Opec meeting is on April 3.