Corona eclipse, crude for $ 1 am amid a surge in supply

Fuel aviation demand has dropped drastically following the fall of aviation, which has impacted crude oil prices.

Deadly virus infestation in China After the start of the new year, the corona virus infestation has spread rapidly to other countries outside China, hitting the economies of different countries globally, and recent developments in various markets around the world as the pace of world development slows. While the world's stock markets have witnessed an unprecedented upward trend recently, record-breaking ups and downs in various agri and non-agri commodities markets, including gold and silver, have also been reported, with market veterans getting stunned by seeing such cash-strapped moves.

In such an environment, crude oil prices have been on the rise in recent years, with crude oil prices falling sharply. With the spread of corona virus to various countries globally and the slowing pace of economic growth thereafter, there has been a significant drop in demand for the crude oil market in the world market. The Corona virus has reduced the number of passengers traveling on airplanes and a major loss to airlines when ticket cancellation has begun. With the fall of aviation, the demand for fuel used in airlines has dropped dramatically, affecting the price of crude. Vehicles running on roadways have also declined.

Corporate companies have closed business trips. The Work From Home option has been adopted. This has also led to a decline in demand for fuel used in vehicles. Fuel demand is also falling in industries that are slowing down industrial development. Thus, the demand for crude oil globally has dropped significantly in the short term and prices have been under pressure as a result.

Meanwhile, when crude oil prices were falling in the world market recently, a meeting of OPEC, a producer of crude-producing countries, was convened in Vienna to decide what steps to take to curb price reductions. The meeting was discussed in the direction of further reducing crude production. However, Russia's refusal to reduce crude oil production at this meeting left OPEC's crude producing nations at bay, and as news came out, crude oil prices continued to plummet, with New York prices dropping to $ 5 a barrel while Brent crude fell below $ 5. Were.

Meanwhile, Saudi Arabia has been outraged by Russia's refusal to reduce production, and Saudi Arabia has reportedly vowed to increase its crude production significantly from April to 1 million barrels on a daily basis. Russia, too, has announced oil-warfare in the world market, announcing increased production. Saudi Arabia and Russia recently met with the United Arab Emirates to join the campaign, deciding to increase crude oil production. According to world market analysts, the United Arab Emirates, besides Saudi Arabia and Russia, is expected to increase crude oil supply by the UAE due to increase crude oil supply from April.

Saudi Arabia has also decided to increase crude production capacity. In addition, Saudi has also launched a price war to reduce crude oil sales recently. This is affecting the market price of crude. However, at the $ 5 a head, the price has been stagnant. According to Russian analysts, the cost of crude products in Russia comes to about $ 1 a barrel. Such a cost to Saudi is estimated to be less than this. Given this, supply will increase further and demand will continue to slow down, while crude oil prices in the world market will go down even lower to $ 1 to $ 2 a barrel. However, recently, the US has decided to increase its purchase of crude oil by lower prices from the world market to increase the purchase of crude oil, which is keeping an eye on how much support it now offers to reduce the market.

Fear of high prices amid signs of low crop in potatoes

Uttar Pradesh is the largest producer of potatoes in the country. Potato crop there is likely to be less than 5% this year against 5 lakh tonnes

After the onion market in the country has come to the limelight recently, the potato market has also seen a stir. In order to protect the interests of the farmers, which have fallen sharply in the New Year of the year after the record price of Onion Prices 1, the Government has set up boards to allow export of onions and after that the market prices have recently risen again from the low headlines. Potato prices have been rising. Out of the total potato production in the country, potato production in West Bengal is special.

In Hooghly district, about 6 km from Kolkata, West Bengal, the area of ​​potato cultivation is special. According to farmers who have grown potatoes in the area, prices of potatoes have gone up recently. Market prices have fluctuated amid the possibility of potato production declining. Farmers who grow potatoes in the Hooghly area, the prices of 3 kg of potatoes at this time last year were estimated to be around Rs 3 to 3. Potato productivity has dropped by around 3-5% in the region due to weather conditions.

In this area, about 1 to 3 times the yield of potato is seen this year in the cultivation of potatoes in one bigha (about 1.5 acres) of land, which is usually 3 to 5 times more common. In many areas this year, the production of potato against the potato has also increased by about 3-5 times. West Bengal is the second largest producer of potatoes in various states in the country.

In West Bengal, average production of 1 to 2 lakh tonnes of potato is produced annually, as compared to the average yield of about 1 lakh tonnes per year in West Bengal. Last year too, the crop dropped below the previous year. And this year it is seeing even more backward. However, the picture of the crop was optimistic earlier this year and the potato market was showing that the potato crop was expected to grow by about 5% more than the previous year.

However the picture has since changed and the crop was found to be adversely affected due to the monsoon rains. In West Bengal, about one-half to five lakh hectares of potato is cultivated. In particular, Hooghly besides Burdwan, Banakuta, East Midnapore, West Midnapore Vs. Potato cultivation is specially done in the district.

The planting of potatoes, called Pokharaj, begins early and the cultivation of such potatoes begins at the end of October and the crop is ready at the end of December. After Pokharaj, a potato named Jyoti is sown in mid-November and the crop is ready by the second week of January. This time, however, the cultivation of Pokharaj potato was delayed due to poor monsoon rains. This also delayed the preparation of this crop. After this the cultivation of flame varieties of potato was also delayed. In some of the incomplete areas, potato crops were also found to be applied to pesticides. According to sources in the West Bengal Cold Storage Owners Association, potato crop is also less celebrated in West Bengal besides Uttar Pradesh and Punjab.

Given this, the informants are showing the possibility of higher potato market prices. Uttar Pradesh is the largest producer of potatoes in the country. There, potato crop is likely to decline by 5% this year against 5 lakh tonnes. Punjab has also seen adverse weather effects on potato crops. In such an environment, the market is likely to pay higher prices of potatoes.