Trade war between china and America... falling oil prices!
The effect of trade war is now visible on the oil market as well. Goldman Sachs has sharply cut its price forecast for Brent crude and WTI oil. The average price of Brent is now estimated to be $69 per barrel this year and WTI $66 per barrel. Earlier this estimate was 5 to 6 percent higher than this.
What did Goldman Sachs say?
Goldman Sachs oil research head, Daan Struyven, said in his report that the risk of recession is increasing by 2026 and on top of that the increasing production of OPEC+... due to all these reasons, we feel that crude oil prices may fall even further. Not only this, the estimate of Brent crude for 2026 has now been made $62 and WTI $59. That is, there is a possibility of decline in the long term as well.
Historic fall in oil prices
Crude oil prices fell by more than 7 percent on thursday and Friday. Brent crude price was $65.58 per barrel. While WTI was $61.99 per barrel. Both these prices are at the lowest level in 4 years. Brent has fallen by 10.9 percent and WTI by 10.6 percent in a week. This fall is the biggest in the last two years.
What are the reasons for this huge fall?
There are some big reasons behind this fall in crude oil. For example, china increased tariffs on America by 34 percent, which deepened the trade war. Actually, the trump government imposed heavy taxes on many countries one after the other, which are the highest in the last 100 years. Apart from this, OPEC+ countries suddenly announced to increase production from May and now they will bring back 411,000 barrels per day production to the market. Earlier this figure was 135,000. At the same time, the Russian court rejected the petition to close the Caspian pipeline terminal, so that supplies from kazakhstan will continue. All these events have put a lot of pressure on oil prices.
click and follow Indiaherald WhatsApp channel