Crude oil prices fall for the second consecutive week, the effect of increasing supply

Crude prices soften for the second consecutive week

With the announcement of increasing the supply of crude oil from their strategic reserves by the member countries of the International Energy Agency and the US, there has been a softening in crude oil. Although the prices still remain above the level of $100 per barrel

Crude oil prices have seen a fall for the second consecutive week. This softening in prices has been seen after many countries around the world announced to increase the supply of crude oil from their strategic reserves. Although oil in Friday’s trade (Crude Oil) There has been an increase of 2 percent in prices. At present brent crude ,Brent crude) remains below the level of $105 per barrel. On the other hand, there has been no increase in the prices of petrol and diesel in India for the last 3 days amid the softening of crude oil prices. But the Reserve Bank has clearly said that in view of the current circumstances, people have to buy petrol and diesel.Petrol and Diesel) should be prepared for the higher price.

How was the performance of crude oil this week

During the week, Brent crude has seen a decline of 1.5 percent. On Friday, Brent crude futures prices closed at $102.78 per barrel. During the week, the price of Brent crude had reached below the level of $100 per barrel. Crude oil prices have been showing a downward trend for some time now. Brent reached the level of $140 a barrel after Russia’s attack on Ukraine. However, since then the prices have been fluctuating continuously.

Countries announced to supply crude from strategic reserve

The softening of crude oil prices has been seen after the announcement of many oil producing countries around the world to supply crude from their own strategic reserves. The International Energy Agency announced earlier this month that its member countries would increase the supply of crude oil from their emergency reserves. According to the agency, this decision has been taken to control crude oil prices, due to fears of impact on crude supply after Russia’s attack on Ukraine, crude oil prices are above the level of $ 100 per barrel. At the same time, for almost the entire month, prices remained above the level of $110 per barrel. Earlier this week, the US has also announced to supply one million barrels of oil every day during the next 6 months from its strategic reserves. Due to these steps, there has been a softening in the prices of crude oil.

What will be the effect on the prices of petrol and diesel

There has been no change in the prices of petrol and diesel since last 3 days. However, in the policy review of the Reserve Bank, it has been clearly said that people should be ready to pay higher oil prices this year. India is currently engaged in efforts to purchase crude oil at cheaper rates. And oil companies from Russia are making deals to buy crude at concessional rates. However, imports from Russia have a very small share in the total imports of the country. At the same time, pressure is being put on India by the western countries not to deal with Russia. However, despite this, India is buying oil from Russia. Reuters has also written that Russia has found buyers in Asia amid discussions of European countries banning oil from Russia.

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