After some uncertainty and volatility oil prices are looking a bit more stable. There is finally a steady, upward movement after Russia and Saudi Arabia agreed to pump more crude oil and export it to match worldwide requirements. This should stem the global increase in prices. The drop in availability of crude oil stocks.
Saudi Arabia and Russia have decided mutually to produce one million barrels per day of both OPEC and non-OPEC oil to compensate the shortfall of oil. Brent crude which went up to 75.40 per barrel, later fell to $ 67 per barrel.
In the Middle East, Kuwait, Saudi Arabia and U.A.E will have a meeting on Saturday. Meanwhile, China has decided to take a decision based on the move of US President’s plan to impose tariffs on $50 billion Chinese imports.The oil price tension has reduced upon some control over the market, but the world is concerned about the turmoil in Italy.
The last week is expected to build a crude oil inventory of 2.214 million barrels. Up until May 25th, the API report drew gasoline of crude oil inventories for an amount of 1.682 barrels. Cheaper crude has resulted in beating West African crude shipments to Asia.
The entire western market is changing because of the growth in the US oil. The Brazilian levels of crude production is also going up and is getting shipped at cheap levels to China.
The Asian markets have a big reason to worry for the fact that the US crude oil started to erode gradually and that in turn, is reducing the OPEC market share too.
After all this chaos, oil prices started to get under control and crude stocks are building up gradually. However, a majority of the forecasts by various analysts and economists over the world say that the crude is likely to stay around 65/70. This can also impact India in various ways and influence public opinion in a big way. This is because the burden of rise in prices is passed on to the consumers in the end .