Crude Oil Price: The demand for crude oil is increasing amid the global economic recovery. At the same time, other producing countries including OPEC are still cautious about increasing oil production. There is a continuous increase in the price of crude oil.
There is a continuous increase in the price of crude oil in the global market. The US benchmark West Texas Intermediate (WTI) crude has risen up to 2.01 per cent. Whereas, the price of Brent crude oil has crossed $ 70 per barrel for the first time since 2019. Actually, OPEC + says that consumption is increasing worldwide now. All the countries of this group are in favor of increasing oil production cautiously for the months of June and July. Apart from this, talks on the 2015 Nuclear Accord by Iran are not seen in the near future. Iranian officials say there is still no room for a final consensus in the recent round of talks.
After this statement of the officials, it is now also clear that the sanctions imposed on Iran for exporting crude oil are not going to be lifted. Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman has said that there is a spurt in demand. Whereas, Russia also says that now there is a recovery in the global economy.
what is the price of crude oil
For the month of August, the futures price of Brent crude has jumped 1.4 percent to $ 70.26 per barrel. Whereas, the price of WTI has risen by 2.01 percent to $ 67.66 per barrel.
Crude oil boom will continue
Strategic Energy and Economic Research Michael Lynch said, ‘Globally people are now planning about travel. At least in Europe and America, the same is being seen. He said that due to these reasons, the demand is expected to increase. Apart from this, OPK+ countries are also moving towards increasing production. Iran deal is still delayed. In such a situation, it is expected that the upward trend in the price of crude oil is going to continue.
Increasing demand amid fast economic recovery
Big economic recovery in America and Europe has given confidence to OPEC group countries that the consumption of crude oil is going to increase. On Tuesday itself, it has been said in these countries that in July, the production of 8,41,000 barrels of crude oil will be increased per day. The International Energy Agency (IEA) has also indicated that demand recovery is going to be faster than previously estimated. In a year, the demand for crude oil in the global market may reach the level before the Corona period. Another expert in the energy market says that the demand for crude oil from OPEC countries is going to increase. Its demand from Iran is also going to increase.
In April also OPK+ countries decided to increase production.
Let us tell you that OPEC + countries had decided in April that between May and July, production would be increased by 21 lakh barrels per day. Even amid the increase in India’s COVID-19 cases, he had predicted that the demand for crude oil was going to increase globally.
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