Desk Report
Published: 06 Aug 2022, 06:43 pm
Photo: Collected
The
price of fuel oil has been falling in the international market for the past few
weeks.
Today,
Saturday (August 6), the price of oil in the international market has fallen
below 90 dollars.
According
to OilPrice.com, both types of crude oil are now selling for less than $100 in
the international market. West Texas Intermediate crude was reported to be
selling at $88.43 a barrel. On the other hand, Brent crude oil was sold at 93
dollars 95 cents.
According
to various Bloomberg reports, this is the fastest oil price decline since the
first week of last April. It is believed that the demand for oil has started to
decrease due to the Covid lockdown around the world. As a result, fuel oil
prices are falling to the lowest level in the last six months. West Texas
Intermediate prices fell 10 percent in one week.
Oil
supplies from Libya have increased. In addition, economic activity has slowed
in China, which has also reduced imports for the world's largest oil importer.
Importing
countries were in trouble due to high oil prices for a long time. The economies
of Europe and North America are also under heavy pressure. Foreign currency
reserves of developing and poor countries are depleted by importing oil. This
affects the price of other products as well. Inflation in the United States,
the world's largest economy, rose to a 40-year high. Inflation in the United
States was 9.1 percent in June. Which is the highest since 1981.
However,
the Biden administration is not happy with such a large drop in oil prices.
They expect a bigger fall. Amos Hochstein, a senior adviser on global energy
security at the White House, told Bloomberg that oil prices should fall
further. Because OPEC and the US have increased their production.