Lahore: Crude oil prices rose again at the start of the new trading week in the global energy market, with investors closely monitoring the ongoing geopolitical situation in the Middle East and potential supply concerns.
Brent crude futures rose 58 cents, or about 0.8 percent, to $72.57 per barrel in international financial markets. On the other hand, US West Texas Intermediate (WTI) crude also rose 88 cents to $70.11 per barrel.
Analysts say that although crude oil prices saw a significant decline last week, the current geopolitical situation has made investors cautious again. The fear of any potential supply disruption in the global market has an immediate impact on prices.
According to market experts, the Strait of Hormuz is a very important route for global oil trade and any uncertainty arising here can affect the international energy market. Although oil shipments through this route have improved in recent times, concerns about supply are resurfacing as tensions in the region escalate.
Economists say that the constant fluctuations in crude oil prices affect not only the energy sector but also the global economy, inflation and transportation costs. That is why investors and governments are constantly monitoring the global situation.
For countries like Pakistan that rely on imported fuel, an increase in global prices is important because it can increase pressure on import bills, foreign exchange reserves and local fuel prices.
Experts say that if tensions in the region increase further, a further increase in crude oil prices in the global market is not out of the question, while stability in the market may also return in the event of diplomatic progress.
Investors are now focusing on the situation in the Middle East, oil supply, global demand and the policies of major producing countries in the coming days, as these factors will determine the future price trend.