Daily Times

Crude oil prices edged lower on Monday, retreating from the highest levels of three years achieved during the early trade.

As of 1355 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, shed $0.30 (-0.35 percent) to reach $85.76 a barrel. Brent retreated after hitting $86.71, its highest level since October 3, 2018, earlier in the session.

On the other hand, the US West Texas Intermediate (WTI) price reached $83.74 a barrel, down by $0.09 (-0.11 percent), which has been its highest price since mid-November.

The price for Opec Basket was recorded at $84.72 a barrel with a gain of 0.44 percent, Arab Light was available at $86.28 a barrel with an increase of 2.42 percent and the price of Russian Sokol jumped to $88.30 a barrel with an increase of 2.09 percent.

Oil prices slipped over concerns over Omicron variant, as China tightens the rule for entry into the capital city after a jump in the Covid cases. The world’s second-biggest oil consumer, China, has suspended some international flights and stepped up efforts to curb the coronavirus cases at Tianjin where cases are at peak. Many Chinese cities have also urged people to stay put during the Lunar New Year holiday, which could cool demand for transport fuel during a peak travel season. Japan also discusses heightened virus-led restrictions for Tokyo on witnessing more than 20,000 daily infections for the third consecutive day.

Saudi Arabia on Monday said oil stability is paramount and its alliance with the super group of producers has taken measures to ensure energy security.

“We believe Opec+ have done a lot in bringing about stability,” Saudi Arabia’s energy minister Prince Abdulaziz bin Salman said while speaking during Abu Dhabi Sustainability Week summit.

“There is nothing more profound, more important for energy security than having to have a stable market.” Opec+ “is demonstrating a great deal of seriousness and attentiveness to what it takes to energise an economy and how much others are lagging when it comes to that”, Prince Abdulaziz said.

The Opec+ group, led by Saudi Arabia and Russia executed a historic reduction of 9.7 million barrels per day between May 2020 and July last year, but has tapered the supply cuts as demand improved. The group agreed to add another 400,000 barrels of oil per day to the market from February.