Crude Prices/Petrol & Diesel
Against the growing cases of Coronavirus, fear has again been raised about the demand for crude. There has been a sudden big reduction in the demand for crude in the international market. The big crude producing companies are once again afraid of falling 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. Due to this, there is a possibility of a further decline in prices.
Crude at the first level on 15 June
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 for the sixth consecutive day on Wednesday. Please tell that India imports Brent crude on a large scale. With the demand for oil remaining soft and the dollar strengthening, WTI prices have fallen by about 16 per cent in the last 1 week.
Demand from leading consumer country decreased
According to a report by S&P Global Platts, the import of crude in the major consumer country China reached a record high of 12.99 million barrels per day during June. Crude import was 9.72 millisecond a barrel in March. It has now come down to 12.13 million barrels. According to Reuters, China’s crude import has come down to 11.18 million barrels.
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 a decrease in demand for crude. While the cases of coronavirus are increasing, cases are coming back in some countries. Nothing final has been done yet regarding the 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 products should be consumed. In such a situation, a big drop in crude cannot be ruled out again. Crude
By October, it can come to $ 32 a barrel.
How much discount can be available on petrol and diesel?
They say that due to the cheaper crude oil companies will get a discount on prices. In India, 82 percent of its needs are imported crude. Petrol prices have steadily increased or remained stable for the last few months. There is pressure on oil companies to reduce prices. In such a situation, if companies get relief from Brent crude, then they can give relief to consumers. If there is a 20 percent reduction in crude, then petrol and diesel can be reduced by 5 percent. You can say that petrol and diesel can be cheaper by 2.5 to 3 rupees per liter.
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