Daily Times

Crude oil prices surged around one percent on Wednesday amid reports about proposed sanctions by the United States and Europe against Russia.

As of 1245 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.84 (+0.79 percent) to reach 107.48 a barrel. Brent lost nearly one percent in the previous session on a strong dollar, a build-up in the US crude stockpile, and Shanghai’s extended lockdown fuelled fears of slower demand.

The West Texas Intermediate (WTI), the main oil benchmark for North America, jumped to $103.12 a barrel, up by $1.16 (+1.14 percent). The contract fell one percent a day earlier as US crude, and distillate stocks rose last week while gasoline inventories dipped.

The price for Opec basket was recorded at $108.05 a barrel with an increase of 1.71 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 $111.32 a barrel with a decrease of 1.54 percent and the price of Russian Sokol slipped to $96.76 a barrel with a 1.89 percent decrease.

The see-saw in crude prices continued with the trade flow reflecting headlines from the Russia-Ukraine war, supply boost and fall in demand from China on surging Covid-19 cases. The crude oil came under pressure as the European Union again decided to avoid any direct restrictions on Russia’s crude or natural gas exports.

On Tuesday, the dollar hit its highest in nearly two years. A stronger dollar makes oil more expensive for holders of other currencies, so international oil prices move inversely to the greenback trend. Demand worries also mounted after top oil importer China authorities extended a lockdown in Shanghai to cover all of the financial centre’s 26 million people.