Oil prices continued their upward surge on Monday as they inched towards $95 a barrel over increased demand and supply cuts from Saudi Arabia and Russia.
Brent Crude, the international benchmark, was above the $94 a barrel mark while WTI Crude prices were trading above $91 per barrel in early Asian trade.
Earlier in the month, Saudi Arabia and Russia agreed to extend their voluntary oil production cuts through the end of 2023. The production cut of 1.3 million barrels of crude has resulted in Brent Crude gaining 11 percent in the last three weeks and has pushed crude prices to the highest since November 2022.
With the Chinese economy picking up speed can increase demand putting further upward pressure on oil prices.
The petroleum prices in Pakistan have increased sharply since August 15, with petrol and high-speed diesel both going up by over Rs. 55 per liter. If the upward trend in international oil prices continues, domestic petroleum prices could see further increases in the coming weeks.
The increase in international oil prices over a sustained period will also substantially increase Pakistan’s import bill. The country’s petroleum group imports during the first two months (July-August) of the current fiscal year stood at $2.171 billion.