Crude Oil- Crude oil became cheaper by 5% in 1 day, prices of petrol and diesel may also reduce.

Friends, due to the ongoing war between America and Iran in Central Asia, crude oil prices had reached high levels, but after the recent agreement between the two countries, global crude oil prices fell drastically. The price of crude oil had gone above $82 per barrel on Monday morning amid geopolitical tensions, but by the end of the trading session the prices fell significantly to around $77 per barrel. Due to this decline, Indian customers may soon get some relief in the prices of petrol and diesel.

Why did crude oil prices fall?

The biggest reason behind this sudden decline was the positive outcome of talks between US and Iranian officials. Due to which the fear of supply interruption in the global oil market was reduced.

The main developments are as follows:

Crude oil prices fell by nearly 5% within 24 hours.

US relaxed sanctions related to Iranian oil exports for two months.

Concerns about supply shortages eased as Iran continued to export crude oil.

The fear of closure of the Strait of Hormuz has reduced.

There are growing expectations that diplomatic progress between the US and Iran may continue in the coming days.

Current Crude Oil Prices

gulf crude

It closed at $77.52 per barrel on Monday.

Touched a low of $76 per barrel intraday.

Trading around $77.72 per barrel on Tuesday morning.

A decline of about 5% was recorded in the last 24 hours.

US Crude (WTI)

It fell to about $73 a barrel on Monday.

The session ended with a decline of 4.53%.

Trading around $74 a barrel on Tuesday.

There was a decline of about 5.5% in the last 24 hours.

US allows limited sale of Iranian oil

The US Treasury Department has issued a general license, allowing the sale of crude oil, petrochemicals and petroleum products made in Iran until August 21. This step has helped in reducing concerns regarding global oil supply.

Meanwhile, Iran clarified that during the recent talks in Switzerland, it neither agreed to stop its nuclear program nor accepted any new commitments, but the market sentiment has improved as the talks continue.

Improvement in supply situation

Iran has resumed some oil exports that were previously disrupted. On Monday, two oil tankers carrying approximately 2 million barrels of crude oil successfully passed through the Strait of Hormuz.

UAE, Kuwait and Iraq have increased the supply of oil to customers.

Iraq plans to gradually increase production to 42–43 lakh (4.2–4.3 million) barrels per day.

Experts estimate that 20-30 lakh (2-3 million) barrels of additional production may return to the market every day in the coming weeks.

What effect will this have on the prices of petrol and diesel?

The fall in crude oil prices is being closely watched in India, as fuel prices here are largely influenced by global oil trends. If crude oil remains below recent highs and supply conditions continue to improve, oil marketing companies may get an opportunity to reduce prices of petrol and diesel.