Huge fall in the price of crude oilImage Credit source: ai generated
There was a big fall in the prices of crude oil in the international market on Friday. After the news of reduction in tension in the Middle East and reopening of the Strait of Hormuz, a huge fall of up to 10 percent was recorded in the prices of crude oil.
There were earlier fears in the market that the Strait of Hormuz could be closed due to Iran-related tensions, which would have a major impact on global oil supplies. It is noteworthy that about 20% of the world’s total oil supply passes through this route.
Huge fall in crude oil prices
However, the latest signals made it clear that the route is completely open and the movement of ships remains normal. This reduced the risk of supply disruption and as panic in the market subsided, a sharp fall in prices was recorded. Brent crude prices fell to around $ 90 per barrel, while WTI crude also slipped to the range of $ 83-86 per barrel.
Investors booked profits
According to market experts, after the recent rise, investors booked profits on a large scale, which further intensified the decline. Apart from this, possibilities of ceasefire and talks have also made the market sentiment positive.
Petrol and diesel may become cheaper
The fall in crude oil is a relief news for import-dependent countries like India. Due to this, the pressure on petrol and diesel prices may reduce in the coming time. Inflation rate may moderate and the stock market may also get support. Market experts believe that the direction of crude oil prices will now completely depend on geopolitical developments. If tensions subside further, further decline in prices is possible, but any new dispute may cause the market to rise again. It is believed that after this decision, a huge rise can be seen in the Indian stock market on Monday. At the same time, a rise can be seen in the shares of companies making paints and tyres. Apart from this, movement can also be seen in the shares of oil companies.
