The global oil market saw a drop in crude oil prices in the last trading session, and at present both crude oil and West Texas Intermediate (WTI) are in negative territory compared to the previous trading session in the market. Experts in the market are attributing this development to investors selling off stock at higher value due to the recent surge in the market and economy worries.
The current price of West Texas Intermediate crude oil is $89.31 per barrel, and Brent crude is $96.78 per barrel, according to the latest figures. Even as the price has dipped, the global energy market is still uncertain, and investors are waiting for upcoming economic indicators, analysts say.
According to experts, several factors impact the global price of crude oil: the situation in the Middle East, the production policy of oil-producing nations, crude oil inventories in the United States and the rate of the global economy. If these are any major changes, then prices may shift.
Crude oil prices could again see another rise if global demand remains high or if supplies are disrupted, experts in the energy industry said. Meanwhile, a global economic slowdown or a slowdown in overall demand could keep prices under pressure.
Crude oil price volatility matters to countries which import crude oil for their use in various petroleum products, transport, industrial production and overall inflation, such as Pakistan. This is a time for investors, business organisations and policymakers to watch the oil market developments in the world.
