Pakistan’s Oil import bill for October increases 31% as global oil prices rise

Oil prices took a slight dip on Tuesday as uncertainty looms over the OPEC cuts. The prices of oil have seen a significant surge lately as OPEC meeting nears, however, the Russian reluctance to extend the cuts may put the international oil price scenario in jeopardy.

U.S. West Texas Intermediate (WTI) futures were down 24 cents at $57.87 a barrel at 0117 GMT, after falling 1.4 percent in the previous session.

Dubai Crude Oil futures were down 10 cents at 60.88 a barrel 0110 PST, after gaining 20 cents in last session.

According to latest SBP Data, Pakistan’s imports during October 2017 clocked in at 1.117 billion USD up 31% from September imports, the impact of these changes has had a detrimental effect on Pakistan’s Forex Reserves. Of the Petroleum Group imports, major chunk has come from Petroleum Products followed by Crude, and LNG.

Pakistan’s import bill for Petroleum products has been increasing during the last two years as prices of petroleum products have increased in the international markets. WTI, Brent and Dubai Crude prices have soared in the recent months as OPEC cuts have helped the falling oil prices gain some momentum.

Pakistan’s Forex Reserves cover imports worth of 3 months and with the declining remittance and subdued exports; the situation presents a serious problem for economy.