Basra crude prices rise in tandem with global oil market
Shafaq News/ The Basra crude prices rose on Wednesday driven by an upside trend in the global oil market. Oil prices rose today on expectations of strong global demand, including in the world's top consumer the United States.
The price of the Basra heavy crude increased by $1.30 to $77.96 per barrel, while Intermediate counterpart rose settled at $81.26 per barrel after gaining $1.25.
Brent futures for May delivery rose 46 cents, or 0.6%, to $82.38 a barrel. April U.S. West Texas Intermediate crude contract gained 47 cents, or 0.6%, to$78.03.
The Organization of the Petroleum Exporting Countries stuck to its forecast of a strong oil demand growth globally of 2.25 million barrels per day (bpd) in 2024 and by 1.85 million bpd in 2025 and raised its economic growth forecast for this year.
In another indication of healthy demand, U.S. crude oil inventories and fuel inventories fell last week, according to market sources citing American Petroleum Institute figures.
Analysts still believe the Federal Reserve may start cutting rates in the summer despite U.S. consumer prices rising solidly in February on higher costs for gasoline and shelter, suggesting some stickiness in inflation. Lower rates support oil demand.
Oil prices were under pressure in the previous session after the U.S. Energy Information Administration raised domestic oil output forecast but declines were limited on expectations that OPEC+ output cuts will still slow global oil growth and on the recent wave of drone attacks on Russia, including refineries.
