Global Oil Prices Plummet, Brent Falls to Almost 3-Year Low

Global oil benchmark Brent crude futures fell below $70 a barrel on Tuesday for the first time in nearly three years (since December 2021) after OPEC+ downward revised its demand forecast for the current year and the next year. Brent crude futures fell by $2.61, or 3.63 percent, at $69.23 a barrel at 1616 GMT, while the US West Texas Intermediate (WTI) crude was down $2.85, or 4.15 percent, to $65.86. After going up by 1 percent on Monday, both benchmarks were down by more than $3 during the session. In a report last week, brokerage house JS Global said the decline in global oil prices is likely to benefit Pakistan as it is a net oil importer. Other than bringing down Pakistan’s import bill and further aiding the disinflation trend, the government could be in a strong position to provide further relief in the prices of petroleum products. The decline in oil prices has also provided the government with an opportunity to enhance the petroleum development levy (PDL).