The price of fuel oil has decreased in the world market. Crude oil prices fell in the world market after the world’s top oil importer China cut demand and the biggest exporter Saudi Arabia announced an increase in production.
Brent crude oil prices fell 4.46 percent to $93.77 per barrel on Monday, according to energy news agency OilPrice.com.
US West Texas Intermediate (WTI) crude oil prices fell 4.71 percent to $87.75 per barrel. Marban crude oil price stood at $93.83 per barrel.
According to a report by the news agency Reuters, China’s economy slowed down unexpectedly last July. Along with this, the country’s daily refined oil production has decreased by 1 crore 25 lakh 30 thousand barrels. After March 2020, China’s economic growth and refined oil production have not slowed so much.
Heron Lin, an economist at Moody’s Analytics, a market research firm, said data published by the Chinese government showed that China’s domestic market had been affected by record high oil prices. Along with this, the demand for fuel in the country has decreased significantly due to the decrease in consumer demand.
He said, the demand for oil will remain low for the rest of this year. Oil demand also eased with savings due to early warning of Covid restrictions.
Saudi Arabia’s state-owned company Saudi Aramco has also announced an increase in oil production. The company’s chief executive, Amin Nasser, said on Sunday that they are ready to produce a maximum of 12 million barrels of oil per day if requested by the Saudi government.
Analysts say more oil will enter the market if the United States and Iran agree to the European Union’s proposal and reinstate the 2015 nuclear deal. Because if the agreement is reinstated, the ban on Iran’s oil exports will be lifted. This may further reduce the price of oil in the world market.
