Petrol, diesel prices fall further; OPEC denies to cut supply even as oil demand may touch all time low

By: |
March 7, 2020 12:22 PM

An IHS Markit report has said that the global oil demand could fall by as much as 3.8 mb/d in the first quarter, which will be the largest contraction in history.

petrol price, diesel price, crude oil, brent crude, oil supply, OPECPetrol price on Friday was Rs 71.14 per litre while diesel price was Rs 63.81 per litre, according to the Indian Oil.

Prices of petrol and diesel may remain low in the coming days as reports suggest that the global oil supply may fall to a lifetime low. Petrol and diesel prices in Delhi have not increased in the last 13 days, which is in-line to the estimates published in Financial Express Online two weeks earlier. Petrol price on Friday was Rs 71.14 per litre while diesel price was Rs 63.81 per litre, according to the Indian Oil. Fuel prices in India have dropped around 2.5 per cent in the last month.

Oil prices in the international markets are at a freefall after the Coronavirus fear has engulfed the global markets. Brent crude prices dropped further below $50 a barrel on Friday, hitting the lowest level in three years after OPEC’s producer allies rejected any deal to together cut the global crude oil supply. Instead, there are speculations that not only has OPEC failed to agree on additional production cuts, but also that the current OPEC agreement is set to expire in March, after which producers can raise output, which may bring further stir in the oil prices.

Also Read: Petrol, diesel may get cheaper soon; crude oil demand cools, and set to fall further

An IHS Markit report has said that the global oil demand could fall by as much as 3.8 mb/d in the first quarter, which will be the largest contraction in history. A growing number of analysts now see negative oil demand for the full year in 2020, according to the Oil and Energy Insider report. Due to the coronavirus outbreak, businesses around the world and especially in China has taken a major hit, reducing the demand for crude. Meanwhile, the central banks of various countries are looking for ways to provide cushion to the sagging demand in their countries.

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