According to a Reuters report, the main reason for the cheapness of Crude Oil Price is the estimate of the US service sector, which states that the US Fed can maintain strictness in its policy.
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Crude Oil Price Crash: A lot of good news has come for India from foreign markets. There has been a big drop of about three and a half percent in the price of India’s favorite crude oil Brent. After which the prices of Brent crude oil have once again come down below $83 per barrel. At the same time, the price of American crude oil has come down below $ 77 per barrel. According to a Reuters report, the main reason for the cheapness of Crude Oil Price is the estimate of the US service sector, which states that the US Fed can maintain strictness in its policy. This means that the US Fed can again make a big hike in interest rates.
Crude oil prices in foreign markets
According to the Reuters report, during the business session, the estimates of the US service sector have come, then there was panic again in the crude oil market and investors started selling. Due to low demand, the price of crude oil fell by about three and a half percent. According to the data, during the trading session, the price of Brent crude oil fell by about three dollars to $ 82.68 per barrel. On the other hand, WTI fell by about 4 percent to $ 76.93 per barrel. A day ago, Brent reached close to $ 90 per barrel and WTI prices crossed $ 82 per barrel.
Brent becomes cheaper, India benefits
India imports the most Brent crude oil. The reason for this is that the quality of Brent crude oil is much better than American oil and its refining cost is also not high. Because of which India mainly imports Brent crude oil from Gulf countries. Do not think that if Brent crude oil becomes cheaper, then India will get its benefit directly. The biggest advantage will be that the country’s import bill will be less and at the same time it will help India to control inflation.
Petrol and diesel prices will come down
There has been no change in the prices of petrol and diesel in the country since May. While the price of crude oil has seen a decline of about 40 percent since March. The government and the oil marketing companies say that they are compensating for their losses, due to which the common people are not being given the benefit of reduction in crude oil. Now experts say that the benefit of low oil prices can be seen in the new year i.e. in January. A reduction of Rs 5 per liter can be seen in the price of petrol and diesel in all the four metros of the country.
What can be the Fed’s policy
By the way, the Fed has indicated that it may appear to be a little soft in its policy rate. It is being estimated that an increase of 50 basis points can be seen in the Fed policy interest rates to be held in December. It is clear that the last four to 75 basis points will now be reduced. But this time the special thing is that it is India’s first turn to release the policy rate in December. That is, RBI will first release its interest rates, which can be seen following the central banks all over the world.
Source: www.tv9hindi.com”