The price of crude oil in the international market has reached a record high of three years. Its price has reached beyond $ 80 per barrel. Earlier in October 2018, it had reached $ 78.24. US crude oil WTI has also become costlier by 1.1% to $ 74.80 per barrel. Both have shown a jump for the fifth consecutive day.
If the central and state governments do not reduce the tax, then in the coming days in India, petrol and diesel will cost Rs. can grow up to A month ago, the price of crude oil was $ 70 per barrel. Chris Beck, the head of the world’s largest independent oil trader Vitol Group, said the OPEC group would have to consider increasing production beyond the current plan of four million barrels per day to maintain crude oil supplies. Because, now the demand has become more.
Crude may go up to $ 90 per barrel by December
says global consulting firm Goldman Socks that fuel consumption is steadily rising due to increased economic activity in major importing countries – India, China. This will also have an impact on global demand. Whereas, due to non-increase in production, the price of crude oil will increase. Prices may reach $90 a barrel this year.
That’s why crude oil is getting expensive
- Supply-production less than demand.
- Demand and pressure to increase in winter.
- Not enough investment is being made to maintain supply.
- Production curbs from the OPEC group, global economic recovery have boosted demand.
- Due to the reduction of corona in Europe, the consumption of gas and electricity has increased.
Lolita M. Pyron