In the last few days, the prices of UAE’s Murban crude oil and OPEC crude have dropped significantly. Murban crude fell from $105 a barrel to $88 today, about $27 per barrel decline in its price in few days. UAE has deserted the OPEC and the Emirates is fixing the prices of its Murban crude independently.
Meanwhile, OPEC crude also fell to $88 a barrel today, from close to $100 a barrel when Houthis announced naval blockade of Saudi Arabia and attacked Saudi oil tankers in the Red Sea.
Brent crude also hovers around $88 a barrel today after touching a $100 per barrel level within a week. Unfortunately, despite a significant decline in international crude oil prices in recent days, Pakistan government is enhancing domestic retail prices almost daily under the daily-pricing mechanism.
Oil prices fell on Friday as increased shipments through key maritime routes eased supply concerns. However, both major crude benchmarks remained on track for monthly gains of around 20 percent amid persistent Middle East tensions.
Brent crude futures dropped $1.03, or 1.2 percent, to $88 per barrel by 0215 GMT. Meanwhile, US West Texas Intermediate crude declined $1.50, or 1.8 percent, to $82.09 per barrel.
Despite the daily decline, both benchmarks were heading for significant monthly increases as geopolitical risks continued supporting energy markets.
Shipping activity offsets regional tensions
ING analyst Daniel Hynes said higher shipping activity through the Strait of Hormuz helped offset concerns over escalating tensions in the Middle East.
The strategic waterway normally handles about one-fifth of global crude oil and liquefied natural gas shipments. However, it has remained largely blockaded since the US-Israel war on Iran began on February 28.
Meanwhile, Saudi Arabia is seeking to lead a multinational maritime defence coalition covering the Bab el-Mandeb Strait, the Red Sea, and the Gulf of Aden. According to Saudi authorities, 14 countries, including Pakistan, Egypt, Turkiye, Sudan, and Djibouti, support the initiative.
Security risks keep market outlook positive
Last week, Yemen’s Houthi movement announced a naval blockade targeting Saudi Arabia, increasing concerns over Red Sea oil exports.
Although tanker traffic continues through both the Strait of Hormuz and the Red Sea, higher security risks have pushed freight charges and insurance costs upward.
Phillip Nova analyst Priyanka Sachdeva said geopolitical uncertainty continues supporting oil prices. She added that while prices eased from recent highs, the broader market trend remains positive because regional security concerns persist.
