KARACHI – Pakistan Stock Exchange (PSX) opened fourth days of the business week with massive losses as the oil prices in international market touched four-year high sparking fears of hike in local petrol prices.
During early trading, the KSE-100 index has shed 3,313.20 points, or 2 percent, to drop to 162,510.67 points compared to previous close of 165,823.87 points.
It comes as oil prices surged to multi-year high in international market amid supply concerns from Middle East region due to a deadlock over talks to end the US-Israel ware against Iran.
International reports indicate that Brent crude for June delivery rose by $1.91, or 1.62%, reaching $119.94 per barrel. This marks the ninth consecutive day of gains for the June contract, which is due to expire Thursday.
Meanwhile, the more actively traded July contract climbed 94 cents, or 0.85%, to $111.38, following a 5.8% increase in the previous session.
U.S. West Texas Intermediate (WTI) crude for June delivery increased 63 cents, or 0.59%, to $107.51 per barrel, after a 7% jump in the prior session.
A day earlier, Prime Minister Shehbaz Sharif hinted at an increase in petrol prices in view of rising global oil price.
Reports warned that petrol prices could surpass Rs400 per litre mark in upcoming weekly review.
Prime Minister Shehbaz Sharif confirmed that revised petroleum product prices will be announced on Friday. He acknowledged the difficult balancing act his government faces, citing volatile international oil trends and rising fiscal constraints. However, he assured that the final decision would still take public interest into account.
