It’s now official that international crude oil prices have dropped. Figures from Abu Dhabi National Oil Company, Kenya’s source for Murban Crude oil, show that the price of Murban crude oil has dropped by 8.75 per cent to retail at 110.60 USD per barrel in May 2012, down from 121.20 USD per barrel in April 2012.
This is the lowest Murban crude oil price since October 2011 when a barrel retailed at 108.95 USD. This price fall can be attributed to the tumult in the Eurozone, excess supply and positive news from Iran.
The price drop could result to decline in the overall pump prices, which have been on the rise in the recent past.
Below is the trend in Murban crude oil prices for the past 12 months:
- Data compiled by pesatalk.com
To some bad news, the Shilling has been showing signs of weakening against the dollar, standing at an average of KES 85 to the dollar in May 2012. This can be a hindering factor to the overall decline in pump prices, though factoring in drop in Murban crude price, we should still expect a decline in pump prices.