- Global oil prices fall sharply ahead of EPRA’s mid-August review.
- Murban crude drops from Ksh 9,550 to Ksh 8,871 per barrel.
- OPEC to boost output from September, easing supply pressure.
- Shilling stable at Ksh 129.24 per USD; reserves strong at $10.89B.
- Kenyans await possible pump price cuts after July’s steep hikes.
Kenyan drivers may finally catch a break at the pump as global oil prices record a notable drop. The Central Bank of Kenya’s (CBK) weekly report shows Murban crude selling at Ksh 8,871 ($68.25) per barrel on August 7, down from Ksh 9,550 ($73.52) just a week earlier. Analysts say the dip comes from market optimism and an expected boost in supply.
The Organisation of the Petroleum Exporting Countries (OPEC) has announced plans to add 547,000 barrels a day to global output starting September. This extra supply is expected to ease shortages and reduce pressure on prices.
Despite the good news, the market remains unstable. New U.S. tariffs have sparked concerns about slower global economic growth, which could lower oil demand, another factor that has pulled prices down.
The Kenyan shilling has stayed steady at Ksh 129.24 to the U.S. dollar, a crucial factor for a net oil importer. CBK reports forex reserves at $10.89 billion, equal to 4.8 months of import cover, well above the legal requirement.
This drop comes just weeks after steep July price hikes with petrol up Ksh 8.99, diesel up Ksh 8.67, and kerosene up Ksh 9.65 per litre. Energy CS Opiyo Wandayi has reassured Kenyans that the spike was temporary, hinting at lower prices ahead. The EPRA review on August 15 will show if relief is finally on the way.
