Oil Prices Crash 7% Amid Fears of Slumping Demand

Global oil prices plummeted nearly 7% on Monday, marking their lowest levels since July 13. The sudden drop in Brent crude futures and US West Texas Intermediate (WTI) crude was largely due to concerns over demand outweighing supply risks despite historically low US emergency oil reserves.

The report from the US Department of Energy revealed that the country's Strategic Petroleum Reserve (SPR) had fallen to its lowest level since 1983, following the Trump administration's approval to release 172 million barrels of crude oil from the reserve. This led to a sharp decline in oil prices, with Brent crude futures falling by $6.35 to settle at $83.77 per barrel and US WTI crude dropping $4.33 to close at $80.34 per barrel.

The latest fall in oil prices is expected to influence global fuel markets, as international crude benchmarks play a key role in determining petroleum prices in many countries, including Pakistan. Market participants will continue to monitor supply levels, global demand trends, and geopolitical developments for further direction in oil prices.