Short supply situation against demand in crude: prices at three-month high

- Bhoo Bazar : Dilip Shah

- Brent crude prices rose to a high of 84 dollars per barrel: Russia is in the mood to reduce the discount!

In the global market, trends in various markets in the energy sector have seen rapid reversals recently. Global markets of crude oil, gas, coal have witnessed rapid changes in the short term. This year, global crude oil prices fell sharply in late March after remaining high through January, February and mid-March. Although after that the prices rose again in the month of April, but after the price remained under pressure in the months of May and June, now in the month of July, the market has witnessed a new rise and when the price crossed the important resistance level, the indications from the world market were that the market has entered a new zone. is Looking at Brent crude prices for the last fifty-two weeks, the lowest prices were recorded from 71.80 to 71.85 dollars per barrel, while the highest prices were also seen up to 110 dollars. Looking at the monthly price period of four weeks, the price of Brent Crude has been observed to be in the low range of 72.25 to 72.30 dollars and the high price has recently crossed the level of 84 dollars and jumped from 84.15 to 84.20 dollars. New York crude oil prices rose to 80 dollars per barrel. Crude oil prices have risen to a 3-month high in the world market. A situation like short supply in crude oil has recently occurred in the world market. Various crude oil producing countries have cut production and crude oil supply from Russia has also become lighter than earlier. In such an environment, the world market experts said that the bullish movement has become a wave as there is a hope that the demand for crude oil in the world market will increase, especially from China.

The crude oil rally has got a new impetus as various economic figures in China have recently come out weaker than expected, with the government gearing up to provide various types of stimulus packages to support business and industry. Such a rise in the price of crude oil in the world market was seen earlier this year in the month of April and at that time the price of Brent crude oil rose to a high of 84 dollars per barrel. Recently, the prices have been seen going higher for the last four consecutive weeks. However, European economic data has been weak and some segments of the market are also fearing that higher crude oil will dampen European demand. The index of business activity in Europe and America has come weaker than expected. In America, such an index has fallen to a five-month low, although there has been good GDP figures, there has been a further increase in interest rates. Meanwhile, according to the American Petroleum Institute, crude oil stocks there have recently increased by 13 to 14 lakh barrels. Before this stock was announced, the analysts there were showing the possibility that such stocks would decrease by 22 to 23 lakh barrels, but instead, in fact, there has been an increase in crude oil stocks by 13 to 14 lakh barrels, sources of the American Petroleum Institute said. As the price of crude oil in the world market has increased significantly in a short period of time, the market experts are also showing the fear of stopping the demand at the high end. The global dollar index in the world market has recently fallen to a 15-month low. There has been a cautious tone following the oil boom. Meanwhile, some cargo ships loaded with crude oil from Iran have reached the US but there were reports of delays in the process of unloading such cargoes amid various controversies. Meanwhile, after the Russia-Ukraine war, various Western countries imposed various sanctions and restrictions on Russia, and as a result, Russia focused on India to ease its supply of crude oil, and in such a situation, Russia started supplying crude oil to India at low prices.