Crude Oil Price Drop: There has been a big fall in the prices of crude oil due to expectations of a possible peace agreement between America and Iran. On Monday, Brent crude prices fell by almost 6 percent and the price of crude oil fell below $ 100 and is currently trading at around $ 98 per barrel.
Apart from this, there has been weakness in the prices of crude oil in American West Texas Intermediate (WTI). WTI crude oil is seen trading at $92.03 per barrel with a decline of 4.73 percent. In this way, both the major contracts are at their lowest level since May 7. This fall in the price of crude oil is a big relief news for India.
Energy crisis will be averted in India
The biggest relief from this possible agreement from India’s point of view is that it will reduce the long-running tension in the Strait of Hormuz. Due to which Indian ships stranded in the Strait of Hormuz will get a safe way out. Before the war between Iran and America started, about one-fifth of the world’s oil and LNG was transported through this route. With tension in the region reducing, the supply of gas and oil to India will continue uninterrupted. With this, the crisis of LPG and oil shortage in India will be completely averted. Apart from this, the supply chain will also be strengthened.
The reason behind the fall in crude oil prices is the increasing expectations of a peace agreement between America and Iran. US President Donald Trump had recently claimed that America and Iran are going to sign a big and important agreement soon. Which will be announced soon. He has indicated that both the countries are very close to signing a Memorandum of Understanding (MoU). According to Trump, the talks are almost complete. This statement of the US President has created a positive atmosphere in the market. Under this agreement, the Strait of Hormuz, the most important oil route of the Middle East, will be made safe.
it’s too early to celebrate
Although there is a wave of happiness in the world after Trump’s claim, on the contrary Experts continue to warn about this. He says that it is too early to celebrate completely. Because the US President has said regarding the agreement that he is in no hurry to finalize it, which shows that the market may remain volatile at the moment.
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