New Delhi
People are soon going to get relief in the prices of petrol and diesel, because the decline in the prices of crude oil continues. The price of Brent crude fell more than 2 percent to $ 71 per barrel, while WTI fell 2 percent to near $ 67 per barrel. During this week, Brent crude has fallen by 4 percent and WTI by 5 percent. This decline has come at a time when OPEC Plus countries have extended the production cut deadline for the second consecutive time, that is, despite the production cut, oil prices have fallen.
In this, the dollar has strengthened due to the victory of US President Donald Trump and uncertainties related to policy, while there is a possibility of surplus in oil supply next year, due to which the pressure on oil prices is expected to increase further. Amidst all these developments, expectations of reduction in domestic retail prices have also increased.
In September, when crude oil prices were near $70 per barrel, the Petroleum Secretary had said that if these levels persist, retail prices could be cut. However, prices later rose again due to the Middle East crisis, but the price of Brent crude never reached above $82 per barrel.
Experts estimate that there may be a situation of surplus in oil supply next year. The International Energy Agency’s monthly report said that due to increased production in the US, supply could exceed demand by 1 million barrels per day in 2025. Amidst this signal and fears of declining demand in China, UBS has reduced the average estimate of Brent crude for the next year from $ 87 per barrel to $ 80 per barrel.
