Signs of surplus supply in US in crude oil: World market boom will be hampered

- Number of oil-producing rigs in the US rises: Stocks rise too: Indian buyers seek better deals

The world market has seen a sharp jump in crude oil prices recently. However, the overall move was bullish, with New York crude trading at a seven-year high and Brent crude trading at a three-year high. Demand for crude has also increased recently. After the global corona infestation and lockdown, the reopening process has now begun and this has led to an increase in the demand for crude oil in the world market, world market experts said. However recently China, Russia, Britain v. Corona cases have resurfaced in countries, and the issue has been raised in the crude oil market. If we look at supply against demand, growth in supply has been slow. OPEC and its allies have recently decided to increase crude production by only four lakh barrels on a daily basis. In fact, there was hope in the world market for higher production growth due to increased demand, but in reality, the supply side has been tighter than the limited growth in crude-producing countries. The rise in natural gas prices and the rise in coal prices have also had a positive effect on crude oil prices. The recent rise in natural gas prices has also led to indications that some of the demand for natural gas has shifted to crude oil.

There have also been reports of rising crude oil production in the United States. There have been two major hurricanes in the United States recently and crude oil production has been adversely affected, but now crude producers have come out of the impact of these hurricanes and the number of oil rings producing crude oil has also increased. In view of this, market players are showing the possibility of increasing crude production in the United States from now on. Russia, meanwhile, has recently begun talking about increasing its supply of crude oil to European buyers amid rising crude oil prices and tight supply. However, what will European countries give to Russia in return? There have been reports that Russia has asked such a question to European buyers! In terms of India, India is the third largest importer of crude oil in the world. Of the total annual demand for crude oil in India, India has to import about 3 to 4 per cent, market sources said. Most of these imports are made by India from the crude producing countries of the Middle East. Meanwhile, according to a report from Delhi, efforts have been made to bring government-owned oil refineries and private sector oil refineries under one umbrella to get a good deal for crude oil imported into India. Crude prices are rising in the world market and the price is likely to rise further to ૧ 100 per barrel, experts in the world market are showing. Concerns have been raised in India and in such an environment, efforts are now being made to get a good deal for imports. The rupee has also weakened in the domestic currency market recently on the back of rising crude oil prices and rising oil import bills.

The next time OPEC meets, the market will keep an eye on whether crude-producing countries will decide to increase production further. Meanwhile, there are reports that the Chinese government has begun serious efforts to address the coal shortage, and market analysts are predicting that crude oil will come under pressure if coal prices continue to fall. China's statement follows a recent rise in global coal prices, prompting a cautious tone. China recently convened a meeting of coal mine owners, sources in the China Electricity Council said. Meanwhile, according to sources at the American Petroleum Institute, crude oil stocks in the US have recently risen by 3 lakh barrels. Prior to the stock's release, global crude oil market players had predicted that the stock would rise by about 1.5 million to 20 million barrels, but in fact, the stock was expected to rise more than expected. However, there were indications that the stock of gasoline was declining by 3 to 4 lakh barrels.