Global oil prices plunge amid economic uncertainty

ISLAMABAD: After gold, oil prices have also fallen significantly in the global market.

Crude oil prices have fallen by up to four percent in the international market, after which an atmosphere of uncertainty persists in the global energy market.

According to business reports, Brent crude oil is being sold at $67 per barrel, while US WTI crude oil is being sold at $63 per barrel. According to experts, the major reasons for the recent decline in oil prices include concerns about a global economic slowdown, a decline in oil demand and uncertainty regarding the policies of major producing countries.

Economic analysts say that due to tight fiscal policies to control inflation in the US and Europe, industrial activities are slowing down, which is affecting oil demand. In addition, the slower-than-expected pace of economic recovery in China has also put pressure on global oil demand.

On the other hand, investors are being cautious due to the lack of a clear strategy for future production by OPEC+. There is also a fear in the market that if the global economy comes under further pressure, oil prices may fall further.

According to experts, the impact of the decline in oil prices may be twofold on developing countries, where on the one hand, some relief will be provided by the reduction in import bills, while on the other hand, there is also a fear of impacting investment in the energy sector.

It should be noted that earlier, a decline was also recorded in gold prices, after which the overall situation of commodities in the global market has become a cause of concern for investors.