There have been 10 major declines in the prices of crude oil in the global market today i.e. on Tuesday. Brent crude prices fell about 8.5% to $92.50 a barrel in early trading in Asia. Earlier yesterday it had gone near $115. At the same time, American oil (WTI) has also fallen by about 9% to the level of $ 88.60 per barrel. This reduction in oil prices has come after the statement of US President Donald Trump in which he had said that the war will end soon. The price of crude oil will rise in 11 days, Trump said – the war will end soon. Donald Trump’s latest statement is believed to be the main reason for this fall in the prices of crude oil. On Monday, Trump said the current war would end ‘very soon’. His statement has reduced the uncertainty surrounding the global supply chain and increased investor confidence. However, current prices still remain about 30% higher than pre-war levels. Rise in Asian stock markets, Nikkei rose 2.8%. The direct impact of the fall in oil prices has been seen positively on the Asian stock markets. On Tuesday morning, Japan’s benchmark index Nikkei 225 was trading with a gain of about 2.8%. At the same time, South Korea’s Kospi index jumped more than 5%. Experts say that cheap oil acts as a booster for the Asian economy because most of the countries in the region are big buyers of oil from Gulf countries. Oil importers like India will get relief. A major reason behind this boom in Asian markets is that the rising oil prices in recent times had caused a lot of damage to the economy of these countries. Countries like India, China and Japan depend on the Middle East for their energy needs. Due to cheaper oil, the import bill of these countries will reduce and will help in controlling inflation. Due to the war, prices had increased by 30%. Let us tell you that due to the ongoing conflict for some time, there was a fear of disruption in the supply of crude oil. For this reason the prices were continuously rising. Since the beginning of the conflict, oil prices had reached around $120.
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Crude oil became 9% cheaper at $88: Effect of Trump’s ‘war is ending’ statement, Asian stock markets rose by 6%
