SINGAPORE: Global oil prices continued their decline for a sixth consecutive session on Wednesday, pressured by improving oil supply from the Gulf region and easing concerns over disruptions in the international market.
However, despite the recent decline in global crude prices, the Shehbaz Sharif-led government in Pakistan has yet to deliver significant relief to consumers.
According to reports, concerns over oil availability in global markets have eased somewhat after Saudi Arabia resumed operations of a key oil pipeline. The development has added further downward pressure on crude prices.
During Wednesday’s trading session, Brent crude fell by $1.09, or 1.1%, to $98.16 per barrel, while U.S. West Texas Intermediate (WTI) crude declined by $1.50, or 1.67%, to $89.01 per barrel.
Both global benchmarks have now posted losses for six consecutive trading sessions, bringing them close to their lowest levels in nearly two weeks.
Market sentiment has also been affected by expectations surrounding a possible end to the war and the prospects of negotiations. Against this backdrop, Brent crude closed below $100 a barrel at the end of Tuesday’s session, marking its first close below that level since September 8.
The continued decline in international crude prices could potentially ease pressure on fuel costs in oil-importing countries, including Pakistan. However, the impact on domestic fuel prices depends on factors including currency exchange rates, taxes, levies, and the government’s pricing decisions.
