The central Bank of Kenya (CBK) has shared insights on the recent trends in global oil prices.
This update came as the Energy and Petroleum Regulatory Authority (EPRA) was preparing for its next review of fuel prices for the July/August cycle.
In its weekly bulletin dated July 12, CBK disclosed that global oil prices declined during the week ending July 11.
According to CBK, the decline reflects reduced concerns over supply disruptions by oil producing companies.
“International oil prices declined during the week ending July 11, reflecting reduced concerns over supply disruptions. Murban oil price declined to USD 85.18 per barrel on July 11 compared to USD 87.44 per barrel on July 4,” read part of the bulletin.
At the same time, the Central Bank reported that inflation concerns in advanced economies continued to ease in June.
U.S. inflation, CBK notes, declined to 3 percent in June from 3.3 percent in May, driven by lower gasoline prices and moderating rental rates.
At the same time, the US dollar index weakened by 0.66 percent against a basket of major currencies during the week ending July 11.
Also Read: EPRA Reduces Fuel Prices for June & July Cycle
May – June Oil Prices
In its most recent review, the Energy and Petroleum Regulatory Authority (EPRA) lowered fuel prices for the period from May 15 to June 14, 2024.
In Nairobi, super petrol was retailing at a maximum of Ksh192.84, diesel at Ksh179.18, and kerosene at a maximum of Ksh168.76 per liter.
This marked a Ksh1 decrease in the cost of super petrol compared to the period from April 15 to May 14.
Similarly, the price of diesel and kerosene decreased by Ksh1.2 per liter and Ksh1.30 per liter, respectively.
Also Read: Oil Prices Rise Ahead of EPRA Review for June
CBK Summary
During the week ending July 11, the Kenya Shilling remained stable against major international and regional currencies, exchanging at Ksh 128.98 to the US dollar.
Foreign exchange reserves were adequate at USD 7,896 million, meeting the CBK’s requirement of at least 4 months of import cover.
However, the money market remained liquid, with commercial banks’ excess reserves at Ksh 18.4 billion.
Moreover, the Treasury bills auction was highly successful, with a performance of 137.3 percent. The Nairobi Securities Exchange saw an increase in key share price indices, while bond turnover declined by 24.7 percent.
In addition, in the international market, yields on Kenya’s Eurobonds declined.
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