TOKYO: Oil prices fell to their lowest in about three weeks, depressed by firmer dollar and rate hike expectations which outweighed lower US crude stocks. Brent crude futures were down $ 1.12, or 1.4 percent, to trade at $ 82.00 barrel. West Texas Intermediate crude (WTI) futures dropped $ 1.02, or 1.3 percent, to $ 78.14 a barrel.

Both benchmarks, following 2 percent fall on Wednesday are at their lowest since late March, just before surprise OPEC+ production cut announcement, although not all gains from that move have been wiped out yet. Dollar index has moved up around 0.3 percent this week so far, on course for its strongest week since late February. Strengthening greenback makes oil more expensive for holders of other currencies. Meanwhile, US crude stockpiles fell by 4.6 million barrels as refinery runs and exports rose, while gasoline inventories jumped unexpectedly on disappointing demand, according to US Energy Information Administration (EIA). On supply side, oil loading from Russia’s western ports in April is likely to rise to highest since 2019, despite Moscow’s pledge to cut output, trading and shipping sources said.

Pakistan has placed its first order for discounted Russian crude under new deal which could cover 100,000 barrels per day, country’s petroleum minister said.

Published in The Daily National Courier, April, 21 2023

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