Islamabad: Petrol & Diesel Prices are expected to fall in the next half of November since Crude Oil prices tumbled sharply on Wednesday, surprising energy markets and investors alike, as Brent crude dropped nearly four percent to touch $60 per barrel before recovering slightly to $62. Similarly, U.S. West Texas Intermediate (WTI) crude declined by more than two dollars, closing at $58.97 per barrel by the end of trading.
OPEC Forecast Triggers Market Reaction
The sudden decline came after a new OPEC report predicted that global oil supply and demand could reach equilibrium by 2026. The report states that OPEC+ members, particularly Saudi Arabia, Russia, and Iraq, are driving this balance by increasing production levels.
As a result, investors adjusted their positions, leading to increased selling and a shift in market sentiment.
Analysts Expect Prolonged Pressure on Prices
Market analysts noted that OPEC’s latest outlook suggests production growth may continue to outpace demand, keeping downward pressure on prices. The trend has already affected energy stocks and dampened investor confidence. Economists believe that while oil prices may stabilize in the coming years, a significant upward surge remains unlikely if output continues at the current pace.
Geopolitical and Seasonal Factors Remain Key
Meanwhile, experts warn that global geopolitical developments, trade policies and seasonal shifts in energy demand could further influence price trends in the coming months. The OPEC report also highlighted that member states are adopting new strategies to protect market share, raising concerns about a potential price war reminiscent of those seen in 2014 and 2020.
Short-Term Decline, Long-Term Uncertainty
Energy experts predict further short-term declines in oil prices unless OPEC+ countries revisit their production policies. However, they emphasize that sustained coordination among producers could help restore long-term stability to the global market.
Overall, the international oil market stands at a critical juncture, with investors exercising caution as they await upcoming data to determine the direction of global energy prices in the weeks ahead.
