Oil prices fall in global market as domestic demand rises

Crude oil prices fell in the international market on Monday (September 21) on the same day that fuel prices in the country increased. Oil prices fell to their lowest level in more than a week on Monday (September 21) on the possibility of diplomatic initiatives surrounding the Iran war and news of a partial recovery in Saudi Arabia's oil exports.

Reuters reported that the price of Brent crude fell by $2.16, or 2.08 percent, to $101.71 per barrel at 8:00 a.m. Bangladesh time . Earlier in the day, Brent prices had fallen to their lowest level since September 10. The price of US West Texas Intermediate (WTI) crude fell by $2.15, or 2.14 percent, to $98.15.

Market analyst Tim Waterer said some of the risk premium in oil prices has been reduced as the prospect of diplomatic initiatives this week to reduce tensions in the US-Iran war looms.

Tensions between Iran and the United States remain high, but US President Donald Trump has said he is interested in meeting with Iranian President Masoud Pjeshkian, who is due to travel to New York this week to attend the United Nations General Assembly.

Meanwhile, Saudi Arabia's oil supply system has been strained by attacks by the Iran-backed Houthi movement in Yemen, but the country's exports have recovered somewhat.

According to preliminary data from Kepler, Saudi Arabia's oil exports fell to 2.4 million barrels per day in August. But so far in September, they have risen to more than 4 million barrels per day. Aramco has increased oil exports through the Strait of Hormuz by stopping some shipments through the port of Yanbu after Houthi attacks disrupted Saudi Arabia's East-West Pipeline.

According to data from analysts at JPMorgan, Saudi Arabia's oil shipments through the Strait of Hormuz have reached an average of 2.9 million barrels per day in the past six days, up from just 700,000 barrels in August. However, news of a possible diplomatic breakthrough has put downward pressure on oil prices in the international market for the time being.

However, citing the impact of the significant increase in fuel prices and freight charges in the international market due to the ongoing war in the Middle East, the government has increased the prices of diesel, kerosene, octane, and petrol in the country by Tk 20 per liter.

The Ministry of Power, Energy and Mineral Resources announced in a press release on Sunday (September 20) that the prices of all types of fuel oil will be increased. The new prices will be effective from Sunday midnight, i.e. from September 21.