Pakistan to increase Oil reserves as tensions rise in the Middle East

As tensions in the Middle East are on the rise again, there is an immediate concern by the authorities in Pakistan to cater for their oil reserves.According to reports, Pakistan is all set to expand its oil reserves as there is an immediate concern regarding the reserves and Pakistan’s capacity to store fuel.

Sources from the Petroleum reserves say that Ogra is all set to develop a new framework and plan for the expansion of oil reserves.

Reason to increase Oil reserves

According to reports, this move is primarily due to the Palestine-Israel conflict. Earlier last month the Palestinian resistance group Hamas had launched an attack over Israel. After that Israel had been firing nonstop over Gaza as according to reports Israel has dropped more bombs over Gaza than bombs dropped over Hiroshima. The equivalent stands at 18,000 tons and Israel has dropped 1.5 times more bombs over Gaza. 

Due to these unforeseen circumstances and increasing tensions in the entire region, the caretaker government has now decided to increase their oil reserves immediately as Pakistan imports oil from other countries and with this much rise in tension, there’s no telling about future events.

Expected increase in Global Oil prices

The World Bank suggests that an increase in oil prices should be expected according to the Historical records. Just last month, the latest report from the World Bank suggested that if there is a large disruption the oil barrel will cost approximately $150 in the International market.

Moreover, right after the Israel-Palestine war the global oil prices have surged by 6%. The report highlighted that as the economic growth is slowed the oil barrel might average around $80 to $90 at the end of the year but if the tensions in this region escalate even more, the barrel could go up to $150.  Hence the government is all set to expand the oil reserves of the country.