After surging to record highs, crude oil prices eased on Friday bringing much-needed respite for the global economy. The decline, which is the most since December, follows pressure from the US President on OPEC to lower commodity rates.
After surging to record highs, crude oil prices eased on Friday bringing much-needed respite for the global economy. The decline, which is the most since December, follows pressure from the US President on OPEC to lower commodity rates. Commenting on fall in crude prices, veteran banker Uday Kotak said that Trump’s vocal concerns on the issue have helped in cooling down prices. He further hoped that the ‘open mouth policy’ of the US President works to bring them further down.
“Oil: as anticipated Donald Trumps speaks and cools down prices 4%. Hope his open mouth policy works. Iran policy decides actual supply. For India’s sake hope oil not much higher than $70. Watch the space,” Uday Kotak, MD, Kotak Bank, tweeted.
Donald Trump on Friday had told the American media that gasoline prices will come down as he called up OPEC and directed them to keep the prices in check.
In March earlier this year too, Trump had openly raised concerns on rising oil prices. This followed an easing of rates soon after. The experts had then attributed the fall in prices to Trump’s pressure tactics on OPEC.
After the US had said that oil waivers on imports from Iran wouldn’t be renewed, crude oil had hit a 6-month high this week. India, along with seven other countries, is expected to be most affected by the move as Iran has been a long time oil exported them.
The sanctions by the US on Venezuela have already escalated prices of crude oil this year, along with supply cuts by OPEC and other major global producers of oil.
Brent crude oil declined 3.5 per cent to $71.75 per barrel while WTI crude slipped 4.20 per cent to $62.84 yesterday. The experts expect the prices may fall further going forward.
Interestingly, there also exists a section of analysts that says the prices of crude oil may not remain elevated for long on account of US presidential elections scheduled for next year.
Even as the global crude prices remain elevated in the past few days, not much impact can be seen in the prices of petrol and diesel in the country.