- Hindi News
- Business
- US Iran Deal: Crude Oil Prices Dip 3.1% To $74.73; 19M Barrels Pass Hormuz
New Delhi2 hours ago
- copy link
Crude oil prices fell 3.1% on Wednesday after news of a peace deal between the US and Iran. Due to this, the price of Brent crude fell below $ 75 per barrel for the first time since the Middle East war.
In the global market, Brent crude futures fell by $ 2.32 to $ 74.76 per barrel. At the same time, American crude West Texas Intermediate was also trading at $ 71.04 per barrel, slipping by $ 2.17 (2.96%).
19 million barrels of oil passed through Hormuz
After the agreement between America and Iran on June 17, so far 11 ships have crossed the Hormuz Route and left for India. At the same time, US President Donald Trump claimed that 19 million barrels of oil moved from Hormuz on Monday, which is a record so far.
This is how the price of crude oil increased and decreased in 117 days.
| date | price of crude oil |
| 27 February | 73 dollars per barrel |
| March 9th | $120 per barrel |
| 30 March | $107 per barrel |
| 30 April | $110 per barrel |
| 30th May | 91 dollars per barrel |
| 24th June | $74 per barrel |
lowest level since the war began
Brent crude had reached a low of $ 74.61 per barrel during trading, which is the lowest since February 27. Let us tell you that the attacks by America and Israel on Iran started on 27th February itself.
Similarly, WTI also fell to $70.91, which is the lowest level since March 3. Market experts say that due to normalization of movement of oil tankers through Hormuz route, there is pressure on prices.
What benefits will India get from crude oil becoming cheaper?
Crude oil is important for India, because we import about 85% of the oil. Falling oil prices provide relief to the economy on many fronts.
- Petrol and diesel rates will not increase: If crude oil becomes cheaper, the possibility of companies like IOC, BPCL, HPCL increasing the price of oil will reduce. This reduces transport costs and impacts the budget of the common man.
- Impact on inflation: Transport costs will not increase due to non-increase in diesel rates. Due to this, the prices of fruits, vegetables, grains and other everyday food items will not increase.
- Improvements in CAD: Import bill reduces due to cheap crude oil. Foreign exchange reserves are saved and current account deficit i.e. CAD is reduced.
- Rupee strengthened: Decreasing crude oil bill reduces the demand for dollar. This strengthens the rupee and makes imports cheaper.
- Reduce subsidy burden: Government’s subsidy expenditure reduces due to cheaper crude oil. The government can invest the remaining money in sectors like infrastructure, education and health.
- Corporate Profit: Due to cheap oil, costs reduce and profits increase. This has a positive impact on the stock market.
Oil became expensive due to Hormuz being affected
After the war, Iran had almost closed the Hormuz Route. About 20% of the world’s oil and gas passes through this route. Due to its closure, crude oil, LPG, aluminium, fertilizer and plastic had become expensive.
The risk of shortage of medicines and essential items increased in Britain and Europe, as shipping costs had increased manifold. Due to this supply crisis, gas prices in America reached $ 4.15 per gallon and the inflation rate also increased.
Source link
[ad_3]
