Business News / If this prediction comes true then petrol will be cheaper by Rs 20

Zoom News : Jan 14, 2024, 07:58 AM

Business News: Please pray that this prediction comes true. Yes, such a prediction has been made by Citi Research of American investment bank Citi Group. Every person in the world will pray for its completion. The crude oil predictions made by research for the next two years seem to be providing great relief to the world, especially India. If this happens, the price of petrol in India may be reduced by up to Rs. This means that in the year 2025, the price of petrol may be Rs 75 or even less. At present the price of crude oil is below $80 per barrel. The kind of chaos there is in the Red Sea. There is a possibility of increase in the price of crude oil. Even after that, City Research's predictions have attracted everyone's attention. Let us also tell you what City Research has said in its prediction?

Crude oil will be at $60 in two years

Citi Research said in one of its notes that this year i.e. in 2024, the average price of Brent crude oil in Gulf countries is expected to be $ 74 per barrel. Explaining the reason for this, Research said that amid the fear of extra supply, it has reduced its previous forecast by $ 1 per barrel. The special thing is that the bank's researchers have reduced their Brent forecast for 2025 to $ 10 per barrel, and now the international benchmark is seeing an average of $ 60 per barrel next year. Citibank researchers wrote in their note that we believe that due to soft market fundamentals and good supply, OPEC Plus will cut production throughout 2024 like in the first quarter of 2024.

There will be shortage due to these reasons

Brent prices are likely to remain above $70 a barrel this year due to OPEC supply management, as the cartel and its partners in the OPEC Plus alliance are expected to keep the market “fully balanced,” according to Citi. However, analysts have warned that increasing tensions in the Red Sea and the Gulf of Oman may lead to an increase in oil prices in the short term. Even after this tension, there is a possibility of the price of crude oil reaching $100 per barrel in the year 2024. The main reason for this is the increase in American oil production and increase in supply. Besides, there is a possibility of a significant decline in demand in the first half of the year 2024.

Petrol prices may reduce

If experts are to be believed, the effect of reduction in the price of crude oil will be clearly visible in the prices of petrol and diesel. Demand is less. Production and supply from America is continuously increasing. The tension in the Red Sea is also for a long time. This will be resolved soon. In such a situation, even after the production cut by OPEC Plus, the prices of crude oil will remain low on average. Due to which the developing and underdeveloped countries dependent on imports will get a lot of relief. It is expected that we will see reductions in petrol and diesel in both the years 2024 and 2025.

Petrol price will come to Rs 75

On the condition of anonymity, the analyst said that the forecast of crude oil price in the year 2024 is completely accurate. The average price of Brent crude oil in the international market may remain below $74 per barrel. Anyway, before the general elections, there will be a decline of Rs 10 in the price of petrol. In the current year, we may see a decline of Rs 10 to 12 in the price of petrol. At the same time, in the year 2025, the price of crude oil may reach $60 per barrel. Due to which you see a fall of another Rs 10. This means that the price of petrol in the country's capital Delhi can come around Rs 75 per liter.

Petrol and diesel price in India

On the other hand, there has been no change in the prices of petrol and diesel in India. The last change in the prices of petrol and diesel in the metropolitan cities of the country was seen on May 21. At that time, the country's Finance Minister Nirmala Sitharaman had reduced the tax on the price of petrol and diesel. After that some states tried to influence prices by reducing or increasing VAT. The interesting thing is that ever since the prices of petrol and diesel started changing daily in the country as per the international market, this is the first time that petroleum companies have not made any changes during the record timeline.

Price of petrol and diesel in major cities of the country