Crude oil prices have recorded a decline in the global market. After increasing by about two dollars in the previous trading session, oil prices have fallen again, which has highlighted the volatility in the global energy market.
According to available data, the price of Brent crude oil fell by 61 cents, or 0.57 percent, to $106.04 per barrel. The price of US crude oil West Texas Intermediate (WTI) also fell by 47 cents, or 0.5 percent, to $93.27 per barrel.
Earlier on Monday, Brent crude oil closed at $106.65 per barrel, which was its highest closing level since September 15.
Concerns over supply and global political situation are the main factors behind the recent fluctuations in oil prices. The possibility of oil supply disruption due to attacks in Saudi Arabia has caught the attention of investors. On the other hand, expectations of increased Russian diesel exports have also affected the energy market.
Crude oil prices are important for the global economy, as changes in them can affect fuel, transportation and production costs. In an oil-importing country like Pakistan, a decrease in global prices can help reduce the import bill, but local petrol and diesel prices also depend on other factors.
These include exchange rates, government taxes, levies and related pricing mechanisms. Therefore, the impact of cheaper crude oil in the global market is subject to local price reviews and government decisions to reach Pakistani consumers.
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