Crude oil prices rose marginally in the global market on Thursday. Investors are keeping an eye on the situation in the Middle East and shipping traffic in the Strait of Hormuz.
Brent crude rose 35 cents to around $91.97 per barrel in early trade. US West Texas Intermediate (WTI) also rose 17 cents to $86 per barrel.
The most active October WTI contract also recorded a slight increase. Its price remained around $84.53 per barrel.
The recent rise in crude oil prices is mainly linked to the ongoing tensions in the Middle East. Fears of supply disruptions in the market have supported prices.
The situation in the Strait of Hormuz has also become important for the global energy market. This route plays a central role in transporting oil from Gulf countries to the global market.
Global supply could be affected if commercial shipping is disrupted. Investors are cautious about future prices due to this possibility.
Tensions between the US and Iran are also a key factor for the market. Any new developments could see crude oil prices either rise or fall.
On the other hand, global demand and US crude oil reserves are also influencing the direction of prices. If supply remains stable, the price hike is likely to be limited.
Global crude oil prices are of particular importance to Pakistan. The country meets a large part of its energy needs through imports.
A continued increase in global prices could put pressure on Pakistan’s import bill. This could also have an impact on the prices of local petroleum products.
However, local prices are not determined solely by the global crude oil price. The value of the rupee, import costs and other related factors also affect the final price.
The direction of the global oil market in the coming days will depend on the situation in the Middle East, naval activity in the Strait of Hormuz, and US-Iran relations.
The direction of prices in the coming days will be more pronounced than the potential impact of supply disruptions and diplomatic developments.
