Crude prices rise ahead of Opec+ meeting

ISLAMABAD
Crude oil prices rose for the third session in a row on Wednesday on expectations that Opec+ will extend output cuts at an online meeting on Sunday and that fuel consumption will rise in summer.
As of 1340 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.29 (+0.34 percent) to reach $84.51 a barrel. Similarly, the West Texas Intermediate (WTI), the main oil benchmark for North America, went up by $0.30 (+0.38 percent) to $80.13 a barrel. Both benchmarks gained more than one percent in the previous session on Tuesday.
On the other hand, the price of Arab Light increased by $0.83 (+0.96 percent) to reach $87.18 a barrel. Similarly, the price of Russian Sokol increased by $1.10 (+1.42 percent) to $78.70 a barrel. On the other hand, the price for Opec Basket decreased by $0.49 (-0.59 percent) to $81.92 a barrel.
Brent lost about 2 percent last week and WTI nearly 3 percent after the US Federal Reserve minutes showed some officials would be willing to raise interest rates further if it were deemed necessary to control stubbornly high inflation.
The US Consumer Price Index inflation rose 3.4 percent on an annual basis in April, the Labour Department said this month. Minutes from the central bank’s latest policy meeting, released on Wednesday, showed that policymakers are questioning whether the current interest rates are sufficient to curb persistent inflation.
On the supply side, the Opec+ alliance of oil producers is widely expected by analysts to extend voluntary output curbs of 2.2 million barrels a day into the second half of 2024. The group is set to meet on June 2.
Meanwhile on the local front, the government is likely to cut the price of petrol and high-speed diesel by another Rs5.3 and Rs4.1 per litre, respectively, for the first half of June 2024, providing a major relief to the masses. The expected cut is in line with the decline in international prices. Price estimates till May 28, 2024 indicate that international petroleum product prices have eased, with the ex-refinery price of petrol now standing at about Rs184.59 per litre, down from Rs189.86 per litre in the previous fortnight. TLTP