Delta crunch in crude hinders boom: Producers are now in the mood to cut prices

- Fear that Saudi Arabia's price-cutting competition will now spread to other countries

Crew Detail has seen a sharp reversal in recent short-term trends at home and in the world market. Prices have seen a two-way jump. Last year, in the first wave of the Corona in 2020, the global cycle of trade and industry came to a standstill and at one point, crude oil prices were plummeting into negative territory. The market players were shocked by this historic event. However, in the ensuing period, crude oil prices bounced back from the bottom as OPEC and its allies, including Russia, decided to cut production. The subsequent period saw the first wave of corona receding and the process of reopening in various countries of the world saw an increase in global demand for crude oil. Now, in the current year of 2021, the second wave of corona has hit the demand for crude oil anew and the second wave of corona is receding and the producing countries are back in the mood to increase production. According to world market analysts, crude oil prices have also risen sharply in the wake of such turmoil. Behind the global market, the market has also seen the market fluctuate amid a two-way fluctuation in prices.

Global Brent crude traded below ૪ 50 a barrel in October 2020, and has bounced back significantly since then. Even in the current year of 2021, the move of reactionary improvement in crude oil prices was a predictable one. In July this year, after the price went above ડો 50, it crossed ૭૫ 5 and traded above 4. If we look at the price of Brent crude, in the last twelve months, in the last 52 weeks, the price has seen a low of ૩૭ 6 to બે 6 per barrel and a high of ૭૭ 6 to ૭૮ 6. Recently, prices have been trading around ૭૨ 5 to 7. New York crude prices have recently hovered around ૬૯ 5 to 70.

The recent hurricane in the United States, meanwhile, has had an impact on crude oil production and has created a new boom for the global crude market. The Organization of the Petroleum Exporting Countries (OPEC) has recently upheld its decision to increase crude oil production. Prior to the recent OPEC meeting, there were suspicions that the producers might reverse their decision to increase production, but this did not happen and there were reports that the producers had decided to continue increasing global production by four lakh barrels per day. Crude prices were low at the time, but have since been hit by a hurricane in the United States. However, market players in particular are still keeping a close eye on the Delta virus.

Meanwhile, as crude-producing countries have recently stepped up production growth, will Saudi Arabia announce its own reduction in crude oil prices for Bayer countries in Asia for October as well as other crude-producing countries? Such a question has been discussed in the world market and experts fear that if this happens, there will be a price cut in the crude oil market.

Negotiations for a nuclear deal between the United States and Iran had begun earlier, and it seemed at the time that the deal would lift US-imposed sanctions on Iran and lead to more Iranian crude entering the world market. However, since such talks between the US and Iran have been delayed again recently, such agreements have also been delayed. The issue has been hotly debated in the world market as Iran's crude oil has started flowing more towards Afghanistan with the Taliban rule in Afghanistan.