Oil prices moved higher on Tuesday as investors awaited diplomatic talks in Tehran and renewed attacks on Saudi targets kept supply risks in focus. Brent crude futures rose 45 cents, or 0.39 percent, to $116.26 a barrel, while US West Texas Intermediate crude gained 40 cents, or 0.39 percent, to $102.16 a barrel.
The rise came after a strike on a refinery in Saudi Arabia, the world’s largest crude exporter, revived fears of supply disruption in the Middle East, according to market reporting. Costlier energy also feeds inflation concerns and strengthens the case for the US Federal Reserve holding interest rates higher for longer. For Pakistan, which imports most of its oil, higher crude keeps pressure on the import bill and on future pump prices, even though Wednesday’s petrol price was cut on earlier international benchmarks.
Sources: Business Recorder, Mettis Global (CNBC). Written in our own words for information only.