After the news of the US economy for the first time in three years, the world market has a major collapse in oil prices. Analysts believe that the rise in Saudi Arabia's supply has also influenced the bargain.
The Greenwich standard time on Thursday at 5am, Brent Crude Futures were traded at $ 5 per barrel, which is 5 cents or 5 percent less than the previous day. The West Texas Intermediate (WTI) Futures in the United States stand at $ 1.5 per barrel, which is 12 cents or 1.2 percent less. On Wednesday, the price of WTI fell to the lowest level on Wednesday after March 25.
One of the reasons for this collapse in the oil market is suspected of reducing demand and increasing supply. New Delhi -based research firm SS Wealthstreet founder Sugandha Sachdev said there is a possibility of more fall in oil prices in the short term. According to him, the potential for poor demand and supply in the market has created disappointment among investors. He also commented that Brent Crude was at risk of falling to $ 5 per barrel.
According to the news agency Reuters, Saudi Arabia is not interested in helping the oil market by reducing supplies, allied countries and industrial experts have said. The country is ready to survive for a long time in the low -cost market. This is why pressure has been created in the market.
Three sources in the OPEC Plus alliance have told Reuters that several members of the coalition will recommend again to increase production in June. It should be noted that the eight countries of OPEC Plus will hold a meeting on May 7, where they will determine the production plan in June.
Sachdev said that any unexpected changes in production speed or dimension can have a big impact on the market instability in the future.
Meanwhile, the US economy has shrunk in the first quarter of the year. Traders are already seen as one of the major causes of economy contraction to avoid high expenditure due to the imposition of tariffs. In the meantime, President Trump's commerce has complicated and uncertainty, analysts say.
A Reuters survey warned that the global economy could be facing this year due to the ongoing trade dispute. Analysts have said that uncertainty on demand and increasing the supply of OPEC Plus will put extra pressure on oil prices.
Kepler has reduced the forecast for global oil demand for 2021. In the previous daily 1 lakh barrels of barrels have reduced the forecast to reduce the barrel of 1 lakh 3 thousand. This has been blamed for the trade tensions of China-US and the weak demand of India.
According to a survey conducted on 4 economists and analysts in April, they predicted that the average price of Brent Crude would be $ 1.5 per barrel in 2021. The forecast in March was $ 12.5. The average price of crude oil in the United States is also expected to drop to $ 1.5, which was $ 1.5 in the previous month.
The US Energy Information Administration (EIA) says the United States has reduced crude oil reserves by 2 million barrels last week. This reduction has worked on high exports and refinements. However, in the Reuters survey, analysts expected to increase the storage of 1 lakh 20 thousand barrels.
