Oil prices continue to fall; US Crude oil post biggest loss since 1991
Oil prices continue to fall: The crude oil prices in the United States plunged almost 10.7% on Friday. However, it is the biggest weekly loss since 1991 due to the US/ Iraq Gulf War. Whereas, the coronavirus impacting the global demands and growth. Besides, the price war between Saudi Arabia is also one of the reasons for the fall in oil prices.
On the other side, the travel restrictions due to the Covid-19 are also the reason for the oil price fall. The energy researcher IHS Markit said the prices of crude oil will down by almost 10% in the next week.
Besides, the oil prices in the US reported a 29% down and it is a larget weekly loss after 1991. Whereas, the Brent crude oil down by almost 20% in the week and it is the fourth consecutive weeks that oil prices are falling.
“As the global economy continues to fall, the demand for crude oil becomes low. The efforts that are using to cut the production of the US and Capital expenditures are not enough,” said John Kilduff, Capital Management, New York.
Whereas, on Friday, the Brent crude oil down almost 5.2% and stand at $26.98 per barrel. On the other side, the US crude reported a down 10.97% and settled at $22.53 per barrel. The contracts between the companies going to expire on Friday. However, the US crude contract for May reported at 12.7% down and stands at $22.63.
Meanwhile, the US crude already lost half of its value from the last two weeks. Whereas, the Brent Crude down by almost 40% due to less demand and coordinated output cuts. The organization of the Petroleum Exporting Countries (OPEC) ordered to cut the production due to less demand.
Whereas, the US officials on Friday decided to send US Energy Department officials to Suadi Arabia to work and stabilize the market for several months. Texas regulatory spoke to OPEC Secretary-General Mohammad Barkindo about the possibility of production cuts of Crude oil.
Saudi Arabi decided to increase its production up to 12.3 million BPD and booked to send oil throughout the world. Whereas, the US officials urged Trump to get involved in this issue. Whereas, the trader and analysts scrambled to revise the demands of oil as the governments imposed traveling restrictions against Covid-19.
Due to the Coronavirus, the global demands of crude oil decreased by almost 10 million per day, said Giovanni Serio, Head of Research at Vitol.
Energy shares on Friday, March 19th:
Hindustan Petroleum Corporation Limited: The company closed its bullish trend on Friday in the stock market. The company gained 19.90 points with a 10.47% increase and reached 210.00 INR. While in BSE, the company gained 18.55 points with a 9.73% increase and reached 209.25 INR.
Bharat Petroleum Corp Limited: The company closed its bullish trend on Friday in the stock market. The company gained 21.75 points with a 7.24% increase and reached 322.00 INR. While in BSE, the company gained 18.25 points with a 6.08% increase and reached 318.50 INR.
Indian Oil Corporation Limited: The company closed its bullish trend on Friday in the stock market. The company gained 2.95 points with a 3.35% increase and reached 90.90 INR. While in BSE, the company gained 2.65 points with a 3.01% increase and reached 90.60 INR.
Oil India Limited: The company closed its bullish trend on Friday in the stock market. The company gained 4.20 points with a 5.49% increase and reached 80.70 INR. While in BSE, the company gained 5.60 points with a 7.38% increase and reached 81.50 INR.
Savita Oil Technologies Limited: The company closed its bullish trend on Friday in the stock market. The company gained 8.05 points with a 1.32% increase and reached 620.00 INR. While in BSE, the company gained 8.50 points with a 1.39% increase and reached 622.00 INR.
On the other side, both Sensex and Nifty bounce back to the bullish trend in the stock market. On Friday, the bulls show more impact than bears in the last two weeks. The Sensex gained 1,627.73 points with a 5.75% increase and reached a 29,915.96 level. While Nifty gained 482.00 points with a 5.83% increase and reached 8,745.45 level.