Global crude oil prices continued to decline on Tuesday (10), with international benchmark Brent crude falling below US$90 per barrel for the first time since August 31.
According to Reuters, Brent crude futures dropped 3.15% to US$89.65 per barrel by 13:34 GMT, while US West Texas Intermediate (WTI) crude fell 2.68% to US$84.52 per barrel. Reuters
The latest decline follows a sharp fall in oil prices over recent days, with Brent crude losing approximately 23% of its value from a high of US$118 per barrel recorded on October 30.
The drop comes amid easing concerns over tensions between the United States and Iran after US President Donald Trump indicated that Washington would hold off on further military strikes against Iran.
His remarks have reduced fears of prolonged disruptions to oil supplies from the Middle East, contributing to downward pressure on global crude prices.
Expectations of increased global oil supplies have also contributed to the decline, with analysts pointing to growing production and signs of a potential oversupply in the international market. Reuters +1
The continued decline in global crude prices could provide some relief to fuel-importing countries, including Sri Lanka, by reducing international oil procurement costs.
However, any reduction in domestic fuel prices would depend on several factors, including procurement costs, exchange rates, taxes and the government’s fuel pricing mechanism. (Newswire)