In a significant development with far-reaching implications, global crude oil prices have taken a notable tumble, registering a 3% decline, reported the 24NewsHD TV channel.
This sharp drop in oil prices has the potential to spell good news for the Pakistani economy, as experts anticipate a series of positive impacts.
The dip in crude oil prices comes against the backdrop of the ongoing conflict between Israel and Hamas, yet it remains unaffected by this geopolitical turmoil.
Notably, it's a convergence of events in the financial world that seems to be exerting more influence on oil prices.
The upcoming meetings of major central banks, including the US Federal Reserve Bank, the Bank of England, and the Bank of Japan, have stirred a sense of caution among investors. The focus has shifted to the upcoming Federal Reserve meeting, where discussions on interest rates are expected to take center stage.
US crude oil prices, in response to this dynamic environment, have fallen by 3.07% to reach $82.92 per barrel.
Meanwhile, London Brent oil experienced a 2.58% dip, settling at $86.90 per barrel.
The decline in oil prices brings potential benefits for Pakistan's economy, particularly in terms of the import bill.
Experts suggest that the reduction in crude oil prices could substantially alleviate Pakistan's import costs, which, in turn, would relieve the burden on the current account deficit. This development could mark a positive turn for Pakistan's economic outlook, as it grapples with various fiscal challenges.
Reporter: Ashraf Khan