Daily Times

Crude oil prices remained on the downward slide for the second day in a row on Thursday on supply uncertainties as the European countries failed to agree to ban Russian oil exports in the face of opposition from Hungary.

As of 1240 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, shed $1.93 (-1.77 percent) to reach $107.18 a barrel. The West Texas Intermediate (WTI), the main oil benchmark for North America, decreased to $106.60 a barrel, down by $2.99 (-2.73 percent).

The price for Opec basket was recorded at $114.94 a barrel with a decrease of 1.93 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 $109.04 a barrel with a decrease of 1.25 percent and the price of Russian Sokol slipped to $98.35 a barrel with a 1.47 percent decrease. The retreat came as market sentiment was somewhat dented amid a steep sell-off in equities. The US stocks plummeted on Wednesday with the Dow and the S&P 500 both booking their worst daily plunges since 2020. The US Energy Information Administration (EIA) said on Wednesday that the nation’s crude inventories fell by 3.4 million barrels in the week ending May 13 against an expected 2.1 million barrels rise in oil inventories. According to the EIA, total motor gasoline inventories decreased by 4.8 million barrels last week, while distillate fuel inventories increased by 1.2 million barrels.

The EU foreign ministers failed in their efforts to pressure Hungary to lift its veto of the proposed oil embargo, with Lithuania saying the bloc was being held hostage by one member state. Oil surged in 2022 as Russia’s Ukraine invasion added to supply concerns, with Brent reaching $139, the highest since 2008, in March. Worries about growth from China’s Covid curbs and U.S. interest rate hikes have prompted slump. A backdrop of tight supply because of what major producers say is partly a result of inadequate investment remains supportive for oil.