After a month and a half of rising, the price of fuel oil has finally started falling in the world market. At present, the price of fuel oil has dropped below $78 per barrel, which was close to $80 two days ago. The prices are the lowest in the last six weeks, according to various companies.
The presidents of the United States and China are being credited for reducing prices. Analysts say the two countries are helping to lower prices by releasing their reserve oil to the market.
An energy expert in the country says that in a few days the price of oil will come down below $75 per barrel. If prices continue to fall in this way, there will be a demand to reduce the price of diesel and kerosene in the country’s market.
Oil prices have been rising since October following a decision by the Organisation of the Petroleum Exporting Countries (OPEC). They reduced the extraction of fuel oil to offset previous losses. As the world economy recovers, the demand for oil increases. Prices of various products were already rising as the supply system was disrupted during the COVID-19 transmissions. At one point, rising demand and declining supply pushed fuel prices above $85 a barrel. This was the highest price since 2014.
According to Bloomberg, West Texas Intermediate (WTI) and Brent Crude Oil are now at their lowest prices in six weeks. Yesterday, the WTI fell by 2.48% to $76.53 a barrel. Besides, the price of Brent Crude Oil fell by 2.96% to $78.28 per barrel.
