Overview
- Global crude benchmarks climbed above $100 a barrel this week and then swung sharply lower in intraday trading, leaving oil markets highly volatile and sensitive to any fresh shipping or diplomatic headlines.
- Retail gasoline costs have risen materially in multiple countries, with U.S. state averages above $4 per gallon for several days and local peaks topping $5 in parts of California and Nevada, while India, Pakistan, Australia and Uganda also report big pump or wholesale increases.
- Pakistan moved to a daily fuel‑pricing system and approved another round of hikes that set petrol at Rs335.18 and high‑speed diesel at Rs383.46 per litre effective July 25, producing large week‑to‑week increases under the new mechanism.
- Policy tools being used to steady markets include releases and loans from the U.S. Strategic Petroleum Reserve, temporary fuel‑tax discounts in Australia and official supply assurances, even as reserve and commercial inventories sit at multi‑decade lows.
- Economists warn the price shock is feeding renewed inflationary pressure and financial market stress that could push consumer costs and borrowing rates higher if supply threats persist.