ప్రపంచ చమురు ధరలు 30% తగ్గాయి, భారత్ దేశం పై ప్రభావం ఎంత
Global markets, already teetering from the impact of the coronavirus, received a jolt over the weekend as Saudi Arabia cut oil prices and declared its intention to increase output well beyond what the oil market can absorb currently. The Saudi reaction followed the Organisation of the Petroleum Exporting Countries (OPEC) cartel and Russia, the largest non-OPEC producer, failing to reach an agreement to deepen existing production cuts to cope with the falling demand. Oil prices crashed overnight by almost a third to $31 a barrel consequent to the kingdom slashing prices and announcing its intent to increase output. The oil market is now set to witness the rare conjunction of a demand and a supply shock which is bad news for prices. Fears of a fall in demand following the outbreak of COVID-19 had already depressed oil prices in the last couple of weeks. China, a major importer, has cut its imports by a third from Saudi Arabia, its biggest supplier. The possibility of the market being flooded with excess production from Saudi Arabia and Russia leading to a supply shock, therefore, comes at a most inopportune time. There is still a large downside to prices from current levels especially if Russia joins the battle with Saudi Arabia and decides to hike its own output. Analysts are already talking of a floor of $20 a barrel.
An Indo-American News website. It covers Gossips, Politics, Movies, Technolgy, and Sports News and Photo Galleries and Live Coverage of Events via Youtube. The website is established in 2015 and is owned by AGK FIRE INC.
ప్రపంచ చమురు ధరలు 30% తగ్గాయి, భారత్ దేశం పై ప్రభావం ఎంత Global markets, already teetering from the impact of the coronavirus, received a jolt over the weekend as Saudi Arabia cut oil prices and declared its intention to increase output well beyond what the oil market can absorb currently. The Saudi reaction followed the Organisation of the Petroleum Exporting Countries (OPEC) cartel and Russia, the largest non-OPEC producer, failing to reach an agreement to deepen existing production cuts to cope with the falling demand. Oil prices crashed overnight by almost a third to $31 a barrel consequent to the kingdom slashing prices and announcing its intent to increase output. The oil market is now set to witness the rare conjunction of a demand and a supply shock which is bad news for prices. Fears of a fall in demand following the outbreak of COVID-19 had already depressed oil prices in the last couple of weeks. China, a major importer, has cut its imports by a third from Saudi Arabia, its biggest supplier. The possibility of the market being flooded with excess production from Saudi Arabia and Russia leading to a supply shock, therefore, comes at a most inopportune time. There is still a large downside to prices from current levels especially if Russia joins the battle with Saudi Arabia and decides to hike its own output. Analysts are already talking of a floor of $20 a barrel.
This website uses cookies.