Signs of renewed decline in crude oil: Delta infestation fears rising demand

- Fear of recurrence of minus price

The global crude oil market has seen a sharp rise in prices recently. Earlier, the second wave of the Corona saw a decline in global demand for crude oil and in the meantime, global crude oil prices remained under pressure. However, with the recent onset of the second wave of Corona in the world and the end of lockdowns in various countries, the demand for crude oil has been on the rise and prices have skyrocketed. However, this optimism is short-lived. After the second wave of corona, now the third wave of delta virus has started in various countries, indicating that the world market of crude oil has seen a huge increase again. New cases of corona have resurfaced in the United States and China. The incident that took place last year in 2020 is still etched in the minds of crude oil market players. After the Corona outbreak began in China in 2020, the global outbreak of Corona outbreak and the global lockdown created a significant drop in demand for crude oil, while production and supply continued to decline. Such an event was seen for the first time in the history of the market. Now that the delta virus infestation is on the rise again in the world, crude oil market players have been seen to be panicking again. Fear of what will happen next year is haunting the players.

According to world market sources, over the last 12 months, global Brent crude has been trading at a low of ૩૭ 6 to બે 6 a barrel and a high of ૭૭ 6 to ૭૮ 7 a barrel. Were met. OPEC's crude oil producers and Russia decided to cut crude production as demand for corona waned. Following such production cuts, the price of crude in the world market shifted from negative territory to positive territory. Recently, with the second wave of Corona, the crude oil producing countries decided to ease the cut in production to some extent and this has led to an increase in the supply of crude oil in the world market. However, now a new wave of delta virus has started in the world. Fears of a resurgence of global demand for crude oil are being discussed in the world market. In such a scenario, will the global crude oil producers continue to increase production or will they reduce production again? That question is also being discussed again in the world market.

China is considered to be the main buyer in the world market for crude oil and the recent sharp rise in corona infestation in China and weakening of various economic data has also led to a sharp fall in crude oil prices. Delta cases have also increased in the United States. New Zealand has again received indications of a lockdown. Various countries have again appeared to be in the grip of the Delta virus. Given this, there is no immediate prospect of a rise in crude oil prices and even if it does, it will not last, market analysts said. Production is rising in America. In China, retail sales and industrial production have been weak recently. Retail sales and consumer sentiment figures in the US are also showing signs of recovery. According to sources in the International Energy Agency, global demand for crude oil is expected to decline in the July-December period later this year. World market experts also fear that such a drop in demand could exceed expectations if Delta's nuisance increases.