Crude is expected to boost global production by four million barrels a day this month

- Ubhi Bazar ઃ Dilip Shah

- The number of oil rigs in the United States also increased: although the market movement now depends on how the demand remains

The crude oil world market recently saw the equations change rapidly. At one point in time, differences arose between the various crude-producing countries over an increase in production, and in the meantime, world crude oil prices rose sharply in the short term. At the time, there were growing differences, especially between Saudi Arabia and the United Arab Emirates. However, such differences have since been resolved and the decision to increase daily crude production has been taken by the Organization of the Petroleum Exporting Countries (OPEC) and its allies since August. While production is on the rise, market players are keeping an eye on how global demand for crude oil remains. Globally, however, as the second wave of corona is largely over and the vaccination process is accelerating, there are signs of renewed demand for corona's new delta virus. China's demand for crude oil is also likely to decline recently as widespread and record-breaking floods hit China. China is considered to be the largest importer in the world crude market and crude market players are keeping a close eye on the situation in China as new cases of corona are on the rise and heavy floods are also taking place there.

Meanwhile, crude oil-producing countries had earlier cut production amid slowing global demand for corona, and a decision to increase production has been taken recently. The producer countries have decided to increase production by a total of about four lakh barrels on a daily basis in August. Earlier, when differences arose in the producing countries, world crude oil prices soared to a six-year high. However, since then, prices have retreated from higher headlines. Now that the production has increased, the market is keeping an eye on how the demand has been. Production growth, which started in August, is expected to increase further in phase four. Earlier, the producers had slashed production by about 3 lakh barrels on a daily basis, and world producers said they would continue to increase production in phases until the reduction was completely reversed. The United Arab Emirates had demanded at the OPEC meeting that it be allowed to increase production to 3 lakh barrels, and the subsequent agreement allowed the UAE to increase production to 5 lakh barrels per day.

Meanwhile, the recent rise in crude oil prices in the world market has seen an increase in the number of oil rigs producing oil in the US. That number has risen to a 12-month high recently. Experts said that this number has reached a new high after April 2020. Thus, in addition to OPEC and allied countries, crude oil production in the United States is also expected to increase. In such a scenario, the market will decide how the demand stays against the supply. Experts in the global market are also hoping that the effects of the third wave of the virus will not be severe, given the significant pace of vaccination against the corona virus globally. If this happens, then in different countries of the world, if the situation in the field of trade and industry returns to normal, then the demand for crude oil in the world market is also expected to increase significantly, market sources said. If this happens, the price of crude oil is likely to go up to ૧ 100 a barrel. Recently, the price was seen trading around ડો 50. China's demand is likely to play a key role. China's crude oil imports are also forecast to fall to a two-decade low this year. Meanwhile, the market is also keeping a close eye on the outcome of the talks between the United States and Iran, which is set to move ahead in August this year. Experts are pointing out that if the talks are reconciled and the US-imposed sanctions on Iran are lifted, more supplies of Iranian crude oil could enter the world market. The world market players are also keeping an eye on how these negotiations are going now. The number of oil rigs in the United States has risen to close to 600 at 9.