New Delhi : Crude Oil Prices recorded a sharp fall on Tuesday. Crude oil reached below $ 40 a barrel for the first time since June 2020. At the same time, the price of US Crude has also decreased by more than 8 percent. In fact, on Monday, Saudi Arabia announced a reduction in the selling price of crude oil for October, amid a steady increase in the number of positive cases of coronavirus worldwide. After this, crude oil prices reached below $ 40 on Tuesday. Experts say that this will directly benefit the economy like India. Expenditure on import of crude oil will come down and at the same time the price of petrol and diesel in the domestic market can fall.
The number of coronavirus positive cases in India, Britain, Spain and parts of America is increasing continuously. Governments have not been able to control the infection rate in any way for several months. Due to this, the global economy is continuously getting weaker. In such a situation, the demand for crude oil is also at a low level. US WTI crude prices fell by $ 3.42 a barrel on Tuesday, 8.6 percent down from the previous day’s price.
US crude oil prices reached a low on Tuesday after June 15. At the same time, the price of Brent Crude Oil decreased by 5.9 percent. Brent crude prices fell $ 2.46 to $ 39.55 a barrel on Tuesday. In terms of prices, both the oil benchmarks fell below the August price. Brent crude prices fell for the fifth consecutive day and have gone down by 10% since the end of August.
Aramco has cut Arab light oil prices for October, in view of the decrease in demand. Energy analyst Phil Verlager of PK Verleger LLC in Colorado says that Asian buyers are not interested in buying American WTI Crude because of Saudi oil price cuts. However, despite such low prices, crude oil prices have improved considerably compared to April. In fact, the Organization of the Oil Exporting Countries OPEC Plus (OPEC +) had directed to cut oil supply. Now there is an OPEC plus meeting on 17 September, in which the oil market will be reviewed.