New Developments Emerge in Global Fuel Market Ahead of EPRA Review.
New Developments Emerge in Global Fuel Market Ahead of EPRA Review: The Central Bank of Kenya (CBK) has reported an increase in global oil prices ahead of the fuel review scheduled for Thursday, March 14th.
In its weekly economic review, the CBK highlighted that fuel prices increased in the first week of March citing the increased demand in the international market.
Particularly, it was noted that supply in the US had also witnessed a decline, hence the recent surge in demand.
On the other hand, China also recorded a surge in demand. According to reports by the General Administration of Customs, China’s oil imports have gone up by 5.1 per cent first two months of 2024
“International oil prices increased during the week ending March 7 supported by increased oil demand and drawdown of US oil inventories. Murban oil price increased to USD 83.25 per barrel on March 7 compared to USD 82.39 per barrel on February 29,” read the report in part.
With regard to the shilling and the dollar, the shilling has maintained its stability after recording momentum gains against the dollar in February. Currently, the dollar is trading at an average of Ksh143
The stability of the shilling could prove beneficial to Kenyans, given that oil marketers use the dollar to import fuel products. Therefore, a stronger shilling could ease the pressures on any potential spike in prices.
“The Kenya Shilling remained stable against major international and regional currencies during the week ending March 7. It exchanged at Ksh142.07 per US dollar on March 7, compared to Ksh143.59 per US dollar on February 29,” the CBK report highlighted in part.