Crude Prices/Petrol & Diesel: A new wave of Coronavirus is being seen in many countries including Europe and America. Some countries, including France, have announced a fresh lockdown amid rising cases of coronavirus in Europe. Locked returns are once again haunting oil companies to reduce demand. Some countries have also started giving discounts on crude. As a result, in yesterday’s trade, crude slipped 5% to around $ 36 per barrel. Experts believe that if lockdown increases, demand from many countries will be weak. In this case, crude can be 15 to 20 percent cheaper than the current price this year. Companies facing pressure to reduce the price of petrol and diesel can give festive relief to consumers.
Crude decline again
Brent crude has seen more than 5 percent fall in business on Wednesday and Thursday. It has come to around $ 36 per dollar. At the same time, WTI crude went below $ 36, which is the lowest level since June. In fact, the American Petroleum Institute (API) informed that the crude inventories have been more than expected. The week ended 23 October stood at 4.5777 millisan barrels. Later, it was also confirmed by the EIA that the production of crude there has been more than expected. After this, the decline in crude started. Brent crude first fell below $ 40, while it broke down to $ 36. On the other hand, American crude also came at a low of 4 months.
Crude can be 20% cheaper than the current level
Anuj Gupta, deputy vice president (commodity and currency), Angel Broking, says that the current decline is due to increased production of crude, apart from fears that another lockdown will reduce demand for crude. Corona virus cases are coming back in some countries. Large economies such as Germany and France have announced the lockdown. Some countries can do this even further. On the other hand, the production of crude has increased in the US and Libya, due to which the balance of demand and supply has deteriorated.
He says that nothing final has yet been done regarding the corona vaccine. Until the vaccine comes into the market, due to Corona, there will be pressure on the economy. In such a situation, the demand for crude producing companies is likely to remain weak. For this reason, many companies have started giving discounts that their production should be consumed. In such a situation, a big drop in crude again cannot be denied. Crude is expected to hit $ 32 a barrel this year.
Petrol and diesel may fall
Expert says that this year, crude is making cheap. Crude weakened to $ 15 in April. Even after that, crude has increased, but it is in the range of $ 40. Further crude is expected to be cheaper. At the same time, petrol prices have increased or remained stable this year. In India, 82 percent of its needs are imported crude. In such a situation, if companies get relief from Brent crude, then they can give relief to consumers. If there is a reduction of 15 to 20 percent in crude, then petrol and diesel can be reduced by 2 to 2.5 rupees. In fact, a quarter of the ratio in which the price of crude decreases, the track record of decreasing oil prices has been the first.