The price of Murban crude oil has dropped by 12% to it’s lowest witnessed price since January 2011 when a barrel retailed at US$ 95.55 per barrel. Latest statistics released by Abu Dhabi National Oil Company show that the Free On Board (FOB) Price of Murban crude oil lifted in June 2012 was posted at USD 97.35 per barrel, down from USD 110.60 per barrel in May 2012. This fall can be attributed to the tumult in the Eurozone, excess supply and positive news from Iran.
As per the latest Monetary Policy Committee press release, the average exchange rate fluctuated within a narrow range of between KES 84.79 and KES 86.12 against the US dollar in June 2012 as compared with a range of between KES 83.27 and KES 86.83 in May 2012.
Due to the 8.7 per cent drop in crude oil prices witnessed in May 2012, the fuel pump price for Super petrol dropped by KES 3.46 to retail at KES 117.67 in Nairobi. If the latest 12% price drop is any thing to go by, we should expect a further decline in fuel pump prices in this month’s fuel price review by the Energy Regulatory Commission (ERC).
Below is the trend in Murban crude oil prices for the past 12 months:
Watch out for our projected pump prices, to be posted soon.