The federal government is expected to reduce petroleum product prices starting June 1, offering some relief to consumers, according to recent media reports.
Reuters reported that Brent crude futures fell by 12 cents, or 0.19%, to $64.62 per barrel in early Tuesday trading, while US West Texas Intermediate (WTI) crude declined by 15 cents, or 0.24%, reaching $61.38 per barrel.
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Later, Brent crude slightly recovered, rising 11 cents to $64.85 per barrel, and WTI increased by 6 cents to $61.59 per barrel, a modest rebound attributed to low trading volume due to the US Memorial Day holiday.
Daniel Hynes, senior commodity strategist at ANZ, noted that crude oil prices dipped as the market considered the possibility of increased supply from OPEC.
The market has been closely watching signals from OPEC+, especially after Reuters reported that eight member countries, which had previously agreed to voluntary production cuts, will hold a meeting on May 31—one day earlier than planned—to finalize a new production strategy. Sources indicate that the group may decide to boost output by 411,000 barrels per day starting in July.
Despite the recent decline in global oil prices, fuel prices in Pakistan have not dropped proportionally, leading to criticism. Currently, petrol is priced at Rs252.63 per litre, while high-speed diesel (HSD) costs Rs254.64 per litre, following a slight Rs2 reduction in HSD announced on May 16. The petrol price, however, has remained unchanged.
