Mumbai : There is a possibility of a large fall in Crude Price making it cheaper. The price of petrol and diesel (Petrol-Diesel Price Effected) will also reduced due to fall in crude oil.
Due to increasing cases of Corona virus, once again, hostile environment is created for Crude Demand. There has been a sudden big reduction in the demand for crude in the international market.
Crude producing companies are facing the fear of diminishing demand. In such a situation, some companies of OPEC countries have also started giving discounts on crude. On the other hand, production is high in OPEC and the US, but a lot of demand is still on hold.
According to experts, where cases of corona virus are increasing and vaccine is still the work in progress lot of pressure is created on the world economy. In such a situation, the demand for crude producing companies is likely to remain weak. To increase the demand and channelise the high production companies have started giving discounts that their production should be consumed. In such a situation, a big drop in crude cannot be ruled out again.
Crude by October, it may come to $ 32 a barrel. Brent crude fell more than 5 percent and WTI crude fell more than 7 percent in Tuesday’s trade. Brent crude fell below $ 40 a dollar, while WTI crude hovered around $ 36 a dollar. This is the lowest level in crude since 15 June. In the international market, Brent crude was seen trading softly on Wednesday for the sixth consecutive day. India imports Brent crude on a large scale. WTI prices have fallen by about 16 per cent in the last 1 week due to softening of oil demand and strengthening dollar.
Crude being cheaper, oil companies will get a discount on prices. In India, 82 percent of its needs are satisfied by importing rude. Petrol prices have steadily increased or remained stable for the last few months. There is pressure on oil companies to reduce prices.