LONDON: Oil prices in the international market continued their upward trend, with Brent crude approaching the $90-per-barrel mark amid growing uncertainty surrounding global energy markets.
According to media reports, the price of Brent crude oil increased by 72 cents, reaching $89.63 per barrel.
Similarly, the price of US benchmark West Texas Intermediate (WTI) crude rose by 71 cents, bringing it to $83.91 per barrel.
According to Reuters, both major oil benchmarks had already closed more than $1 higher on Tuesday, reaching their highest closing levels since July 31.
The latest increase followed a sharp rise of nearly 5% on Monday, indicating continued upward pressure in the global oil market.
Market analysts said concerns surrounding geopolitical developments were among the factors contributing to the recent increase in crude oil prices.
The latest rise came at a time when expectations of a peace agreement between the United States and Iran appeared to be weakening. Any prolonged tension between the two countries could have implications for global energy supplies and transportation through strategically important waterways.
The Middle East remains a key region for global oil production and exports, and developments affecting major producers or shipping routes can quickly influence international crude prices.
Despite the rise in prices, US industrial data reportedly showed an increase in crude oil inventories. Normally, higher inventories can put downward pressure on oil prices by indicating stronger supply or weaker demand.
However, the increase in US crude stocks has so far failed to offset the impact of broader market concerns.
Brent crude is widely used as a global benchmark for oil prices, while WTI serves as the primary benchmark for US crude. Movements in both benchmarks are closely monitored by governments, energy companies and financial markets around the world.
The continued rise in international oil prices could have significant implications for countries that rely heavily on imported petroleum products.
For Pakistan, sustained increases in global crude prices can put additional pressure on the country’s import bill and foreign exchange requirements. Higher international oil prices can also affect domestic prices of petrol, diesel and other petroleum products, depending on government pricing decisions, exchange-rate movements and applicable taxes.
The latest market movement will therefore be closely watched by consumers and policymakers in Pakistan ahead of future domestic fuel price reviews.
With Brent crude now at $89.63 per barrel, market participants are closely monitoring whether prices will cross the psychologically important $90-per-barrel level.
Further developments in US-Iran relations, global oil supplies, US inventory data and geopolitical tensions are expected to remain important factors influencing prices in the coming days.
For now, international crude prices remain significantly elevated following the sharp gains recorded earlier in the week.
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