The price of Brent North Sea crude, the international benchmark, has extended losses to trade below $75 a barrel for the first time since the start of the Middle East war.
Brent crude falls 3.1% to reach $74.73 per barrel
Brent crude fell 3.1 per cent to $74.73 a barrel, extending its decline after the United States and Iran reached an agreement last week to end the conflict that began on February 28.
Global oil market records downward trend after positive impact
The global oil market recorded a downward trend following the positive impact of the Iran-US agreement. West Texas Intermediate (WTI) crude was trading at $73 per barrel, while Brent crude became more than one per cent cheaper and was trading at $77.8 a barrel. Murban crude fell 1.64 per cent and continued trading at $69 a barrel.
Fuel prices in Pakistan expected to reduce further
The continuous decline in global crude oil prices has increased expectations of more reductions in petroleum product prices in Pakistan.
According to the international news agency, WTI crude oil fell to $71.88 per barrel, while Brent crude dropped to $75.70 per barrel.
Following the decline in global prices, Pakistan had earlier announced a significant reduction in petroleum product prices. The government reduced the price of petrol by Rs74 per litre and high-speed diesel by Rs67.30 per litre, providing relief to consumers.
After further falls in global crude oil prices since last Friday, discussions are continuing across Pakistan over whether the government will announce another major reduction in petrol and diesel prices before the next price review.
Economists said local petroleum prices are not determined solely by international crude oil rates. Petroleum levy, taxes, import costs, exchange rates and other factors also play a role in price calculations.
Experts said the possibility of a major reduction in the next review remains limited, although a small decrease may be expected.
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