Crude Oil Price / The price of crude oil has risen, which country will be in worse condition after Pakistan?

Zoom News : Apr 02, 2024, 08:22 AM

Crude Oil Price: Due to increase in the price of crude oil, recently the price of petrol in Pakistan has increased by about Rs 10 Pakistan Rupee per liter. On the other hand, the prices of crude oil in the international market have reached a 5-month high. There is an election atmosphere this year in 50 countries of the world. In such a situation, the biggest question now is that after Pakistan, which country will see an increase in the price of crude oil?

This question is also important because due to increase in the prices of petrol and diesel, there is a rise in inflation figures in the country. Especially in those countries which are dependent on crude oil imports. Because of which it becomes a compulsion for the Central Bank of that country to tighten the monetary policy. Due to which the people of the country have to bear the brunt of inflation along with increased EMIs.

If we talk about India, the price of petrol and diesel in the country has been reduced by Rs 2 last month after almost 2 years. At the same time, India has also entered the Lok Sabha elections. The election results will come in the first week of June. Till then there is no possibility of increase in the prices of petrol and diesel. If during that time the price of crude oil crosses $90 per liter, then oil companies can decide to increase the prices.

Otherwise they may suffer huge losses. Recently there has been a report that by reducing the price of petrol and diesel by Rs 2 per liter by petroleum companies, there can be a loss of Rs 30 thousand crore in a year. Let us also tell you what is the price of crude oil at present and what is the price of petrol and diesel in India?

Crude oil prices at 5 month high

Crude oil prices in the international market have reached a 5-month high. If we talk about Brent crude oil of Gulf countries, it has reached close to $88 per barrel. According to Bloomberg data, it is trading at $ 87.79 per barrel with an increase of 0.42 percent. This level was last seen in the last days of October 2023. On the other hand, the prices of American crude oil WTI has crossed $ 84 per barrel. American crude oil prices have reached this level after September 27, 2023. At present, the price of WTI is trading at $ 84.05 per barrel with an increase of 0.41 percent. According to experts, the price of WTI is soon going to cross the level of $ 85 per barrel. At the same time, the price of Brent crude oil can cross $ 90 per barrel.

Demand in America and China

According to data from the US Commerce Department, the Personal Consumption Expenditure (PCE) Price Index decreased to a great extent in the month of February. Most analysts said the decline in the PCE price index should lead to a June Fed rate cut, which could boost economic growth and increase oil demand.

Manufacturing activity in China increased in March for the first time in six months, according to an official factory survey. China is the world's largest crude oil importer. Bob Yoger, director of energy futures at Mizuho, said in a note that Chinese oil demand is certainly capable of taking oil prices to the next level. He said that strong demand for gasoline in summer and the surge in oil demand in China could be a one-two punch that could take it to $100 per barrel.

These are also the reasons

In Japan, a central bank survey showed that optimism in the service sector reached a 33-year high in the first quarter, boosted by rising tourism and rising profits from price increases.

In Europe, oil demand was stronger than expected, rising by 100,000 barrels per day (bpd) in February, compared with forecasts for a 200,000 bpd contraction in 2024, Goldman Sachs analysts said.

On the supply side, top oil exporter Saudi Arabia may raise the official selling price (OSP) for key Arab light crude in May after the Middle East benchmark strengthened last month, according to industry sources.

Russian Deputy Prime Minister Alexander Novak said that he has indicated that in the second quarter also, the oil companies of the country, which are the country's oil exporters, are thinking of reducing production instead of exporting petroleum, along with other members of OPEC+.

Drone attacks from Ukraine have destroyed several Russian refineries, leading to a decline in Russia's fuel exports. About 1 million bpd of Russian crude oil processing capacity is offline.

Whose number after Pakistan

After the increase in the price of crude oil, Pakistan has increased the price of petrol in its country by 10 PKR per liter. After which the price of petrol there has become 290 PKR. Now the eyes have turned to those countries which are dependent on crude oil imports. There are many countries in the world which import crude oil. But due to increase in prices, one is not able to buy more expensive crude oil. According to experts, there is no possibility of any increase in the price of crude oil in the countries where election atmosphere is prevailing. Whereas in countries where new governments have been elected like Pakistan, the prices of petrol and diesel can be increased.

Petrol and diesel prices in major cities of India