The price of fuel oil in the world market has further decreased. The price of crude oil has dropped to 78.10 per barrel in one day. This rate is the lowest in the last two months.
According to a report by CNN, the prices of the product are expected to fall in the world market except for the United States and China. Crude West Texas Intermediate (WTI) traded up à§à§¬ 8.10 a barrel on Saturday. Brent crude also fell at the same rate to 78.48.
Reuters and CNN reported on Friday that world oil prices have begun to fall without the United States and China releasing reserves. On the same day, the price of fuel oil fell to 80 per barrel. Earlier, the price had crossed 75 per barrel.
Currently, West Texas Intermediate (WTI) and Brent crude oil prices are the lowest in the last six weeks. US President Joe Biden and Chinese President Xi Jinping are being thanked for bringing down fuel prices.
The United States and China have played a major role in reducing the price of fuel oil on the world market, said Tonhausen of Bijorner, a restructuring energy consultancy. The two countries have started to reduce prices without the reserve oil market.
A few days ago, a virtual meeting between Joe Biden and Xi Jinping discussed the issue of global fuel oil supply. In particular, Biden urged the Chinese president to release the stored oil to the market. Millions of barrels of oil came into the market after the two countries took concerted action.
But the United States has not only asked China to increase its use of reserved oil, but also large oil-consuming countries such as Japan, South Korea and India. In the beginning, China defended the request.
Tonhausen said investors expect 20 to 30 million barrels of oil to arrive in December. This could be from the United States and China, or through a broader integrated approach by the International Atomic Energy Agency. However, the release of stored oil may not change the overall picture for a long time.
India calls Sino-US efforts 'futile': India calls Sino-US efforts to reduce fuel prices futile According to them, the use of oil from the country's reserves will have little effect on world market prices.
On Wednesday, Indian Oil Minister Hardwip Singh Puri told Bloomberg TV that strategic oil reserves had never been for a situation like this ...
According to the Times of India, Biden is under a lot of pressure at home due to rising oil prices. In addition to easing that pressure, the US president has advised Asian countries to use oil reserves in order to send a special message to OPEC Plus (15 OPEC members and Russia) which did not respond to calls for lower oil prices.