Islamabad: Possible diplomatic progress between the US and Iran and renewed hopes of an agreement had an immediate impact on the global energy market, resulting in a drop of more than 5 percent in crude oil prices. In the international oil market, investors were active in selling, taking into account the possibility of a possible resupply of Iranian oil in the global market, putting pressure on the market.
The price of Brent crude oil dropped to the level of $91 per barrel while the price of US West Texas Intermediate (WTI) crude dropped to the level of $84.43 per barrel based on the latest trading data. The drop in prices was expected when market analysts suspected that progress on a possible agreement between the US and Iran would lead to an expansion of the global supply of crude oil, according to reports.
The drop in prices of the world’s oil is leading to good news for countries that rely on imports, including Pakistan, experts say. There could be some scope for further easing of the import fuel price and easing pressure on the foreign exchange in the coming days if prices in the global market remain unchanged. They, however, said that future prices would rely on the deal or no deal between the U.S. and Iran and geopolitical developments in the Middle East and world supply and demand.
