Crude oil prices fall sharply, crude breaks down due to signs of increase in oil production by UAE
The UAE Ambassador to the US has said that the UAE is in favor of increasing production, this has created the possibility of increasing the supply of crude oil.
Huge fall in crude oil prices
Crude oil (Crude oilThere has been a sharp fall in the prices of ) today. In fact, there have been reports in the media that UAE is in favor of increasing oil production to control prices. With this, oil prices have seen a drop of up to 18 percent today. brent crude ,brent crude price) It has come down below the level of $ 113 per barrel. Earlier this week, Brent crude had reached near the level of $ 139 per barrel. This level of prices has been the highest level in the last 14 years. Russia Ukraine Crisis (Russia Ukraine CrisisDue to which the prices have seen a jump of more than 30 percent in a week.
Why did the prices fall?
In fact, the Financial Times quoted the UAE Ambassador to the US as saying that the UAE is in favor of increasing production. At the same time, Reuters has written by talking to market experts that the UAE can immediately increase the production of 8 lakh barrels of oil. Which will compensate for the seventh part of the supply reduced by the sanctions imposed on Russia. At the same time, supply from Iran is also expected to increase in the coming time, due to which further pressure has been estimated to reduce further. Looking at these signs, the experts have predicted that the prices may come down further. In fact, oil producing countries also fear that such a jump in oil prices will have a negative effect on demand, while if the economy slows down due to expensive oil, then crude oil prices will fall further. Therefore OPEC countries can increase oil production.
where did crude oil reach
At the time of writing the news, Brent crude for May contract was trading below $ 113 per barrel, down about 12 percent. It has seen a decrease of more than $ 15 per barrel today. Brent crude had closed at around $128 per barrel in the previous session. In today’s trading, Brent had come down to the level of $105. That is, today there was a maximum reduction of $ 23 per barrel. At the same time, WTI crude fell by more than 11 percent to reach below $110 a barrel. Earlier, there was a sharp jump in crude oil and in the last 6 days, a rise of 28 percent was recorded in the crude.
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