Crude Oil Price: Crude Oil Prices May Fall Below $ 90 Per-barrel
Crude Oil Price: Crude oil prices may fall below $ 90 per barrel, know why China became a big factor.
The fall in China’s industrial output for the second consecutive month has started showing the effect of crude oil prices.
China is the largest importer of crude oil and the slowdown in industrial activities in China is likely to affect the demand for crude.
This is the reason why Brent crude prices fell by three percent globally and crude oil prices stood at $ 103.9 per barrel.
Prices may fall below $ 90 per barrel.
Its price is expected to decrease further on Tuesday.
Europe will also continue to import crude oil from Russia till next December so that there will be no dependence on limited countries for the supply of crude oil globally.
SBI Ecowrap has predicted the crude oil price to go below $ 90 per barrel in the next one or two months.
Falling crude oil demand.
According to the report released on Monday, the demand for crude oil in China is decreasing continuously and in April this year.
The demand for petrol, diesel, and air fuel in China may decrease by 20 percent compared to April last year.
Accordingly, a reduction in crude oil consumption in China is estimated at 1.2 million barrels per day.
Impact of the Russo-Ukraine War.
According to the report, in the year 2021, compared to the average demand for crude oil in China, there has been a decrease of up to nine percent.
A few days before the start of the Russo-Ukraine war, the global price of crude oil was around $ 90 a barrel, which reached near $ 130 a barrel after the war.
Prices are expected to soften.
The reduction in demand for crude oil in China and the continued buying of oil from Russia by Europe and America has again started the trend of softening in crude oil.
Due to the lockdown in many major cities of China due to Corona, the industrial production there has declined to near February of the last year 2020.
Russia continues production.
By continuing to purchase crude oil from Russia on behalf of the European country, Russia has continued to produce crude.
Russia produces 4.7 million barrels per day and exports 50 percent of this production to countries in Europe.
