Oil prices edge up despite stronger USD

ISLAMABAD
Crude oil prices were slightly up on Friday despite signs of easing geopolitical tension in the Middle East and a stronger US dollar.
As of 1235 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.12 (+0.14 percent) to reach $85.90 a barrel. Similarly, the West Texas Intermediate (WTI), the main oil benchmark for North America, went up by $0.14 (+0.17 percent) to $81.21 a barrel.
On the other hand, the price of Arab Light decreased by $1.28 (-1.46 percent) to reach $86.38 a barrel. Similarly, the price of Russian Sokol decreased by $1.16 (-1.45 percent) to $78.72 a barrel. On the other hand, the price for Opec Basket decreased to $86.03 from $86.52 a barrel.
Brent ended the last week higher by 3.97 percent, increasing to $85.34 from $82.08 a barrel. WTI also closed the week higher to $81.04 from $78.01 a barrel, registering a weekly increase of 3.88 percent.
US Secretary of State Antony Blinken, who is on his sixth tour of the region since the latest conflict began in Gaza, announced the draft during a visit to Saudi Arabia, where he held talks with Crown Prince Mohammed bin Salman.
Meanwhile, crude demand is expected to reduce on the strengthening dollar, which increases the cost of oil for investors. Earlier this week, the US Federal Reserve left its target rate unchanged at 5.25 to 5.50 percent, but said it expected to cut rates three times this year. Lower interest rates stimulate economic growth, improving crude demand.
Oil prices recorded a weekly gain last week due to Ukraine’s attacks on Russian refineries, which heightened fears of a supply disruption. Ukraine’s intensified drone strikes caused a fire at Rosneft’s largest refinery on March 13, marking one of the most severe attacks on Russia’s energy sector in recent months. So far this year, there have been strikes on two oil terminals, four oil and fuel depots, and 14 refineries.
While the damage at most facilities has been repaired quickly, between 600,000 to 900,000 barrels per day of refining capacity is to remain offline for “several weeks to months”, MUFG said, quoting reports.