new Delhi. With a record jump, the crude oil rising skyward has been taken down by the trustworthy promises of UAE. When the UAE promised to increase the supply of crude in the global market, the price of crude oil saw a big fall for two years. It is estimated that the process of increasing retail prices in India will not start at the moment.
After the sanctions on Russia, on the appeal of America, the United Arab Emirates (UAE) assured to increase its production. Due to this, the price of Brent crude fell by $ 16.84 per barrel to $ 111.14. The decline of 13.2 percent in the price of Brent crude is the highest since April 21, 2020. US crude oil futures also fell by $ 15.44 to $ 108.70 per barrel. This is a big drop since November.
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Arab countries rushed to America’s request
After the decision to stop the supply of crude oil from Russia, America had requested the Organization of the Oil Producing Countries (OPEC) to increase its supply. On this, UAE Ambassador in Washington, Yusuf Al Otaiba said that we are in favor of increasing production and appealed to other countries of the organization to cooperate in this. Saudi Arabia has also given assurance of increasing its production.
Market will soon get 8 lakh barrels of oil
Bob Yeager, director of energy futures trading at Mizuho, said the increased production from the UAE could soon hit the market. It is estimated that the supply of 8 lakh barrels of oil will be available to the market soon. This will reduce the effect of shortfall in supplies from Russia. Russia supplies 7 million barrels of oil daily, which is 7 percent of the total global supply.
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OPEC’s tone changed in a week
OPEC’s tone on America’s voice changed completely in a week. Until a few days ago, OPEC said that the reason for the increase in oil prices was not low production but geopolitical tensions. Then OPEC was ready to increase production by only 4 lakh barrels per day. Fateh Birol, Chief of the International Energy Agency, said that we are ready to increase production on need. The agency had announced last week to release 60 million barrels of oil from its reserves in the market.
Tags: Crude oil prices, Petrol diesel price
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