World crude oil prices ease below $80

Global crude oil prices remained below the key US$80 per barrel mark on Wednesday, easing from recent highs as expectations of improved oil supply and easing geopolitical tensions weighed on the market.

Brent crude, the international benchmark closely watched by Sri Lanka, traded at around US$79 per barrel, while U.S. West Texas Intermediate (WTI) hovered near US$76 per barrel. The decline follows optimism over the potential resumption of Iranian oil exports and expectations that supply through the Strait of Hormuz could gradually normalize.

Despite the recent drop, analysts caution that global oil markets remain vulnerable to geopolitical developments, shipping disruptions and changes in demand from major economies. While prices have retreated significantly from recent peaks, they remain above levels seen at the beginning of the year.

For Sri Lanka, lower global crude oil prices could provide some relief by reducing fuel import costs, easing pressure on foreign exchange reserves and potentially supporting more stable domestic fuel prices if the downward trend continues.

However, energy experts said that any benefit to local consumers will depend on factors including exchange rate movements, shipping costs and the government's fuel pricing formula.