The demand for crude oil globally is expected to grow significantly in the latter part of the current year

- Ubhi Bazar ઃ Dilip Shah

- Although the agreement process between the US and Iran will move forward, the supply from Iran in the market is also expected to increase.

Crude oil prices in the global market recently fell again after hitting a two-year high. However, the market has seen an upswing. Brent crude recently rose above ૭૨ 6 a barrel, hitting a new high since May 2016. However, a reactionary retreat followed. According to crude oil market analysts, the rapid and widespread spread of the corona vaccine in the United States, Britain and various European countries has reduced the incidence of corona in these countries and now there are fewer new cases in these countries. Have met. In such an unlocked environment, there are indications that the stalled cycles in trade and industry in these various countries have resumed. The movement in the masses has resumed. The boom in the transport sector has resumed. Air travel has also increased again. In such an environment, market prices have risen sharply in the short term amid expectations of increased demand for crude oil from Europe, Britain and the United States, world market analysts said. In addition, with the extinction of corona in China and the resurgence of the economy there, there has been a recent increase in demand for crude oil in the world market. Meanwhile, there have been reports of corona infestation in various Asian countries. In view of this, the global crude oil market is expected to see a significant increase in demand in the second half of the current year as compared to the first half of 2021, market sources said. Brent crude for August delivery recently traded at a high of ૨૫ 4.5 to ૩ 2.50 a barrel. New York crude's July futures recently traded at a high of ૭ 50, a new high since October 2016. However, as prices rise, higher prices continue to drive profitable sales. But as soon as the market declines, new market support is found and the market is seen bouncing back after the shock, the overseas experts said.

World crude oil players have been eyeing talks on a nuclear deal between Iran and the United States. If such an agreement is successfully reached, the possibility of increasing Iran's supply of crude oil to the world market is being discussed in the world market. The number of oil rigs producing crude oil in the United States has declined recently, but if the market price goes up, the number of such oil rigs producing crude oil in the United States will rise again and this will lead to a resurgence of crude oil production in the United States. However, in the second half of June 2021, the total demand is likely to be higher than the total available supply of crude oil in the world market from June to July, market sources said. Talks on a nuclear deal have begun in the run-up to Iran's presidential election, which has sparked heated debates around the world.

OPEC and allied producers, meanwhile, cut production to cope with earlier demand for corona and lockdowns, and now that demand is picking up again, these producers are looking to reduce crude production. After a slight increase in such production in June, market players are now keeping an eye on how such production is expected to grow in July. A meeting of OPEC and allied producers is now scheduled for early July, and the market is keeping a close eye on the decision to be made at that meeting.

Crude producers, meanwhile, have struggled to grow. The recent booms in the world crude oil futures market have become more active. According to market analysts, the world's crude producers are in the mood to increase daily production by about 3 lakh 30 to 4 thousand barrels in July. According to market sources, the daily total global production in April was expected to increase by about 3 million barrels by the end of July, compared to the May, June and July production growth. Crude oil stocks have also declined in developed countries. In such OECD countries, crude oil stocks are likely to fall below the five-year average by the end of July. Meanwhile, sources in crude-producing countries said that whatever production grows by July 2021, the proportion of production will be maintained without further increase till April 2031. Brent crude is expected to trade between થી 50 and ૭૫ 6 a barrel, according to market analysts. India's crude oil imports have been slowing down in recent months, but now there is hope in the world market for a resurgence in such imports.