Amidst the multi-faceted crisis, the news of a drop in the price of fuel oil in the international market is giving relief to some extent.
The energy sector of various countries has started to see the light of hope in this. At the time of rise in the dollar rate, this decline in oil prices will give some relief to the country’s foreign exchange reserves.
Opec, the organization of the world’s oil exporting countries, has predicted that the demand for fuel oil will decrease this year due to the decrease in global demand.
Besides, US President Joe Biden’s visit to Saudi Arabia is also affecting the stability of oil prices. Although not completely,
Saudi Arabia and the Gulf oil producing countries led by it can increase oil production to some extent by responding to the call of the US President.
China’s recent corona situation has also influenced the decline in oil demand. Due to the lockdown in the country’s industrial regions, oil consumption has decreased.
In addition, the recently signed agreement between Russia and Ukraine on food supply, mediated by Turkey, is also having an impact on the world market.
However, the biggest impact on the fall in oil prices this week was the decision to release two million barrels of oil from the US Strategic Petroleum Reserve or SPR.
- Earlier, US President Biden had announced the release of 18 million barrels of oil from the SPR.
- Apart from this, the IMF’s forecast of a major slowdown in global growth is also having an impact on energy prices. In this situation, it assumed that oil prices will remain stable throughout the year due to reduced demand.
- The price of crude Brent crude in the international market rose to $123 per barrel on March 8. After that, it decreased a bit, but on June 8,
it rose again to 120 dollars per barrel. After that, the price of oil gradually decreased. Last Wednesday (July 27), crude Brent crude was selling at $105 per barrel. And US crude West Texas Intermediate is selling at $96 per barrel.🔱