Oil Prices Drop as Gold Prices Rise in First Week of August

CBK Reports Ksh 737 Drop in Oil Prices to Ksh 9,380 Per Barrel

The Central Bank of Kenya (CBK) has announced a Ksh 737 drop in oil prices per barrel, alongside a rise in gold prices during the first week of August.

According to the CBK Weekly Bulletin dated Friday, August 7, 2026, Murban crude oil prices declined to Ksh 9,387 per barrel on August 6, down from Ksh10,124 per barrel on July 30.

CBK: Oil Prices Decline Amid Middle East Tensions

The bank also reported that the decline in Murban crude oil prices occurred amid heightened Middle East tensions.

In addition, the bank noted that renewed tensions in the Strait of Hormuz remained a concern, with the waterway effectively closed.

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CBK stated that the developments came as inflation risks remained elevated in advanced economies during the week ending August 6.

However, while oil prices declined, gold prices rose during the same period.

Spot gold prices rose from approximately Ksh530,907 per ounce on July 30 to Ksh548,768 per ounce on August 6.

This represented an increase of approximately Ksh17,861 per ounce, with the dollar price rising from USD4,102.40 to USD4,240.41 over the same period.

Inflation Rises as Kenyan Shilling Remains Stable

The bank further highlighted that there was an increase in inflation in the Euro Area during July.

According to the bulletin, Euro Area inflation rose to 2.9% in July, from 2.8% in June, largely driven by higher energy prices, as Core inflation increased to 2.5%.

The central bank added that the global economy remained resilient in July, with the J.P. Morgan Global Composite PMI Output Index improving marginally to 52.6.

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Furthermore, the bank showed that the Kenya Shilling remained stable against major international and regional currencies during the week ending August 6, as the shilling exchanged at Ksh129.41 per US dollar on August 6, compared with Ksh129.40 on July 30.

CBK also reported that Kenya’s foreign exchange reserves stood at USD15.248 billion, equivalent to 6.3 months of import cover, as of August 6.

As a result, the bank noted that the reserves remained above the central bank’s statutory requirement to maintain at least four months of import cover.

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