Tokyo: A 30 per cent drop in crude oil prices has been recorded in the international market. This fall in crude oil prices is due to Saudi Arabia starting a price war with Russia. This is the biggest drop in crude oil prices since 1991. Apart from this, the decrease in demand due to the outbreak of Corono virus is also being said as a reason for the fall in prices.
Actually, despite the low demand for oil, the supply remains the same. In such a situation, there was a meeting between the oil exporting countries organization OPEC and allies about the reduction in oil production, but there is no agreement in it.
Due to this, the international benchmark Brent Crude Future fell by $ 14.25, ie 31.5% to $ 31.02 per barrel. This is the biggest drop in crude oil prices since 17 January 1991, the first Gulf War and 12 February 2016. It was trading at $ 35.75 per barrel at 0114 GMT.
At the same time, the prices of American West Texas Intermediate crude also fell by $ 11.28 i.e. 27.4 percent to $ 30 a barrel. This is the largest decline in WTI after the Gulf War ie January 1991 and the lowest level after 22 February 2016. It was trading at 32.61 per dollar.
The direct benefit of this reduction in the price of crude oil in the international market will be seen in the domestic market as well. Ajay Kedia, direct of Kedia Commodities, said that due to the fall in crude oil prices, petrol-diesel in India may be cheaper by Rs 5-6 per liter. He said, more than this, the price of oil cannot fall, because the rupee remains weak against the US dollar.
