ISLAMABAD: The international crude oil price of OPEC (Oil Producing and Exporting Countries) in the Gulf has dropped to under $98/barrel after a gap of many weeks while Brent oil fell to $94/barrel on Thursday morning.
Since March 2022, OPEC crude oil was trading mostly above $110. At one time, it touched the record high price of $129/barrel, but then fell gradually to below $100/barrel by Thursday. The value of Brent oil also fell below $94 amid reports that the UK and Europe are going to experience a recession in the coming winter season.
The US-driven economic sanctions on Russia after the invasion of Ukraine have led to an unprecedented increase in prices of essential commodities, including oil and gas, leading to a global economic slowdown which will turn into a serious recession starting from Dec/Jan, experts said.
The American crude oil _ WTI has fallen to $88 a barrel on Thursday.
A few days ago, international companies like Barclays and Citigroup indicated a significant decline in the international crude oil prices in the coming months in the wake of a recession in the United Kingdom, Europe, and some other countries in the world.
In the past three months, the oil prices have declined by more than $30 per barrel, but the consumers in Pakistan are unlikely to take benefit from this situation because of the coalition government’s agreement with the IMF to enhance the petroleum levy to Rs50 per liter in different phases and depreciation of rupee versus the dollar.
A consistent decline in international crude oil prices will be a good development for economic stability in the country with less than expected pressure on the foreign exchange reserves, but expecting relief from the government would be a distant dream in the prevailing scenario.
