Crude Oil Price Crash: Today, on April 8, a big fall is being seen in the price of crude oil. There is a lot of turmoil in the global markets after US President Donald Trump postponed the possible bombing of Iran by two weeks and proposed a two-sided ceasefire. Earlier, Trump had threatened by setting the deadline for this attack till 8 pm (Eastern Time) on Tuesday night.

How much did the price of crude oil fall?

With this announcement of Trump, today the price of West Texas Intermediate or US crude variant in the global market has fallen by 17 percent to near the level of $ 95 per barrel. At the same time, Brent crude has also fallen by about 16 percent and reached the level of $92.

What did Trump say?

Trump announced on ‘Truth Social’ that it would be a ‘two-way’ ceasefire, with the condition that Iran agree to fully and safely reopen the ‘Strait of Hormuz’. The near closure of the Strait of Hormuz caused turmoil in energy markets around the world as about 20 percent of the world’s energy is supplied through this route (mostly to Asia and other emerging markets). During the war, crude oil prices in America increased by 70 percent. Trump’s announcement is expected to reduce the risk of war in the market, due to which the ‘war premium’ in prices has decreased rapidly.

When will the situation get better?

“It will take a long time for the system to recover,” said Robert Rennie, head of commodity research at Westpac Banking Corp. It will take several months to restart the shut-in wells, get crews and ships back into place, and replenish refinery stocks. “In this environment, even assuming a ceasefire actually happens, it seems difficult for Brent crude prices to remain much below $90–$95 in the near term,” he added.

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