Global crude oil prices rise 5.27% for fourth week

ISLAMABAD: Global crude oil prices rose 5.27% for the fourth straight week, hitting a nine-week high.

Global oil prices were inflated by tight supply, easing concerns about the spread of the Omicron variant of the coronavirus and a weaker US dollar. Over the previous three weeks, global crude oil prices jumped 8.85%, 2.15% and 4.13%, respectively.

According to the details, the US West Texas Intermediate (WTI) reached $83.82 from $78.90, up 4.97% during the week. The low close of the week, $78.23, remained on Monday while the highest close of the week was Friday at $83.82.

Similarly, Brent crude, the international benchmark for two-thirds of the world’s oil, rose 5.27% over the week to $86.06 from $81.75 a barrel. The lowest close of the week was $80.87 on Monday while the highest close was seen on Friday at $86.06.

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Opec Basket price jumped 4.85% from $80.80 to $84.72 a barrel, Arab Light price rose 2.39% to $84.24 from 82.27 $ and the price of Russian sokol jumped 3.75% to $86.49 from $83.36 a barrel over the past week.

The US dollar headed for its biggest weekly decline in eight months, turning commodities into a more affordable buy for holders of other currencies. The US dollar index rose 0.1% to 94.931, but ended the week down about 0.9%, its worst weekly performance in eight months.

In addition to dollar weakness, oil markets have also been comforted by renewed demand optimism as early signs of Omicron cases stabilizing in US cities where the new variant first appeared. times suggest that the United States is approaching its peak of infection.

Global crude prices were also affected by the US Energy Information Administration’s weekly report showing US commercial crude oil inventories fell by 4.55 million barrels to 413.3 million barrels during the week. prior to January 7.

Supply constraints and worries of a Russian attack on neighboring Ukraine also pushed prices towards their fourth weekly gain despite reports that China is set to release crude reserves around the Lunar New Year – from February 1 – as it joins the US reduction plan. world oil prices.

The exact volume to be released has not yet been disclosed and will depend on oil price levels. The Biden administration held a series of talks in November last year with Japan, India, South Korea and the United Kingdom, all major oil consumers, to initiate a coordinated release of oil stocks. oil, intended to help bring prices down as tight supplies put a squeeze on the market.

While China usually keeps its oil reserves secret, in September last year the country held its first-ever public auction of crude oil reserves, selling 7.4 million barrels. Japan and South Korea have also announced plans to sell rough this year.

Steve R. Hansen