Crude Oil Price Fall Today: Despite the ongoing tension between Iran and Israel, a sharp decline of about 6 percent was seen in the prices of crude oil on the morning of Wednesday, March 25. Which has attracted the attention of the market. At the same time, the stock market also continues to rise.

Usually, in such circumstances, oil is expensive, but this time the situation seems to be changing. The fall in oil prices is being linked to US President Trump’s statement. Now the question is arising whether this is the beginning of improvement in the situation? Let us know about this…

Oil prices fell on expectations of talks

A major reason behind the fall in oil prices is believed to be the news of possible talks between America and Iran. According to the information, America is intensifying diplomatic efforts to reduce this tension. The possibility of a month-long ceasefire is also being expressed. Due to which the market has taken a sigh of relief.

The effect of this positive signal was visible on the oil market. The result was that American crude oil (WTI) fell below $ 88 per barrel. Whereas the price of Brent crude has also slipped to below $95 per barrel.

Israel’s stance is important

While on one hand there are expectations of talks, on the other hand Israel has not shown any softness in its tough stance. Indications are that his military campaign will continue for now. Israel does not have full confidence about a possible ceasefire.

According to reports, Israel feels that Iran will not easily accept such an agreement. In such a situation, making any concrete statement regarding uncertainty seems to be a difficult task.

fear of rising inflation

The impact of the uncertainty created in the Middle East can be seen on the economy of the entire world. Experts who have understanding of the subject believe that if this war continues for a long time, the risk of inflation may increase.

Also, due to the closure of the Strait of Hormuz, there is a possibility of a deep impact on energy needs. Especially on countries like India which are largely dependent on imports for their energy needs. Due to reduced supply of oil and gas, even the kitchen budget of homes and businesses may get affected.

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Crude Oil Price Fall Today: Amidst the tension in the Middle East, a day earlier i.e. on Tuesday, there was a big fall in the prices of crude oil in the international market. Due to the situation arising out of the Iran-Israel dispute and the closure of the Strait of Hormuz, Brent crude oil reached $ 117 per barrel intraday on Monday. However, on Tuesday morning it was seen falling by about 10.17 percent and trading at $ 85.15 per barrel.

A day before this, in the last trading session, oil prices had reached such a high level for the first time after the year 2022. Therefore, the market has also got support from this sudden decline. Let us know why such a sharp decline has been recorded?

Market softens after Trump’s statement

Donald Trump’s recent signal is being believed to be the reason behind this weakness in oil prices. Trump has indicated that the ongoing tension between America and Iran may end soon. Meanwhile, West Texas Intermediate (WTI) crude also fell by about 10.06 percent to $ 85.25 per barrel.

According to reports, meanwhile, a phone conversation took place between Vladimir Putin and Trump, which is being seen as an attempt to calm the situation.

Priority of oil companies regarding LPG supply

Bharat Petroleum has said that the supply of domestic LPG is being given first priority. Due to the global situation, pressure on the supply of fuel and LPG has increased. Therefore, LPG production is being increased to ensure that there is no shortage of gas in homes. LPG will also be provided to hospitals, schools and other important institutions as per the requirement.

A committee of oil companies has been formed to look into the demand from the non-domestic sector. Which includes officials of Indian Oil, Bharat Petroleum and Hindustan Petroleum. This committee will decide how much LPG should be given to which sector, because the supply of non-domestic LPG is largely dependent on imports and in such a situation it is not possible to meet every demand.

Also read: Annual consumption of 3 crore tonnes of LPG in India, know what steps have been taken till now after Iran War