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Crude oil.

There is news of great relief for the common people. There has been a decline of 12 to 15 percent in the prices of crude oil in the international market. The price of Brent crude, the crude oil of Gulf countries, has fallen below $ 97 per barrel. Due to which, there has been a decline of more than 13.50 percent in the prices of crude oil in the future market of the country. This means that the prices of crude oil in India have decreased by Rs 8 per liter. If experts are to be believed, there may be a further decline in the prices of crude oil in the coming days. The biggest reason for the big fall in crude oil prices is the signs of reduction in tension and agreement between America and Iran. Let us also tell you how much the prices of crude oil have reduced from the international market to India.

Big fall in crude oil

On Wednesday, crude oil prices fell by more than 13.50 per cent to Rs 8,380 per barrel in futures trading. The fall was caused by heavy losses in global benchmarks and signs of a possible deal between the US and Iran. On the Multi Commodity Exchange (MCX), crude oil for May delivery fell Rs 1,318, or 13.59 per cent, to Rs 8,380 per barrel. Whereas a day ago the price of crude oil was at Rs 9,698 per barrel. In the morning, crude oil prices opened at Rs 9,610 in the futures market of the country. At 5.20 pm, the price of crude oil was trading at Rs 8,643 per barrel with a fall of Rs 1,055 i.e. about 11 percent.

how many liters in a barrel

From the international market to the Multi Commodity Exchange of India, the volume of crude oil is measured in barrels. If it is calculated in litres, it becomes 158.987 liters i.e. approximately 159 litres. At present, the price of one barrel of crude oil in India had reached Rs 8,380. This means that the price of one liter crude oil in the trading session had become Rs 52.70 per liter. Whereas a day earlier the same price was seen at Rs 60.99 per liter. This means that during the trading session, there has been a fall of Rs 8.29 per liter in the price of one liter crude oil. Which is a big decline. Similarly, the June contract also fell by Rs 1,098, or 11.69 per cent, to Rs 8,298 per barrel.

How much will Gulf and American oil fall?

On the other hand, a big decline is being seen in the prices of crude oil in the international market also. If we look at the data, the price of American Crude Oil WTI has fallen by more than 15 percent as compared to the high of Monday and Tuesday. On Tuesday, Brent crude prices were trading around $115 per barrel. From there it fell to trade at $96.77 per barrel. Whereas the price of American Crude Oil WTI has also come down from the peak of a day earlier i.e. $105 per barrel to below $89 per barrel. This means that the price of American crude has seen a decline of about 16 percent.

Why did crude oil become cheaper?

Experts say that there was huge pressure on oil prices when news came that Washington and Tehran were close to an initial agreement. The purpose of this agreement is to end the conflict and open the way for comprehensive nuclear negotiations. According to reports, the proposed framework includes curbing Iran's nuclear enrichment. In return, it will get relief from sanctions, billions of dollars of its frozen funds will be released, and restrictions on shipping through the Strait of Hormuz will also be relaxed. Brokerage firm Kotak Securities said oil prices fell for the second consecutive session. This happened because US President Donald Trump decided to temporarily stop security operations in Hormuz so that negotiations could proceed. Besides, he also confirmed that the ceasefire is still in force. This reduced the geopolitical risk premium.

What are the experts saying?

Meanwhile, US Defense Secretary Pete Hegseth said that the ceasefire still remains intact. At the same time, American military officials indicated that there is no need to increase tension due to recent minor incidents in the region. This put even more pressure on oil prices. Norbert Rukker, head of economics and next generation research at Julius Baer, ​​said that the period of ups and downs continues. America has once again stopped protecting the trade through Hormuz, due to which an atmosphere of uncertainty is being created. At present, the traffic from there has almost come to a standstill. He further said that despite the continuing deadlock, oil prices fell below $100 per barrel.

Saurabh Sharma

Covering stock market, economy and commodities for 15 years. Before joining TV9, he was also associated with many big organizations like DNA, A-Shiyanet, Jansatta and Rajasthan Patrika.

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