International Oil Prices Crash Again

Oil prices plummeted to $87 on Tuesday, following a surge in supply levels that returned to pre-war rates. According to data from the Gulf and Eastern Europe, Iran's oil exports continued to lag while Saudi Arabia, Iraq, and other suppliers reported up to 7 million barrels per day. At the time of this report, the Western Texas Intermediate (WTI) fell to $86, a drop of $2 or 2 percent. The Brent crude price had decreased by $2 or 1.8 percent to $98.

UAE crude, which Pakistan relies on, also dipped near $103 in the past 12 hours. Despite ongoing security concerns around the Strait of Hormuz, crude continues to flow despite the risks. In late September, Gulf crude flows even surpassed pre-war levels by up to 91 percent. However, the situation is far from normal. Refined fuel exports remain struggling at around 60 percent of normal levels, indicating that diesel and other refined fuels may still face price pressures even as crude supply improves. Moreover, shipping risks persist in the region, maintaining a geopolitical influence on oil prices.