POBNEWS24, Dhaka, Aug 2 2022 : Fuel oil prices have come down at a significant rate after the recent surge in the international market. Last July, the demand for oil in the market decreased due to lower industrial production in the large economies China and Japan. Analysts pointed out that the price of fuel oil has decreased due to the low possibility of demand increase in the near future.
According to Trading Economics, a market-related organization, the price of WTI crude oil in the United States fell by about 5 percent to $93.30 per barrel on Monday.
In addition, the price of Brent crude oil in London fell almost 4 percent to $100.15 per barrel.
Investors will meet this week with officials from the Organization of the Petroleum Exporting Countries (OPEC) and other major oil producing countries. The meeting will discuss the adjustment of oil supply. Earlier, the price of fuel oil decreased in the world market.
China, the world’s biggest crude oil importer, saw output pick up in June. But due to the announcement of lockdown due to the new corona infection in the country, the expected production did not happen in July. Note that China has been following the policy of ‘zero infection’ to control Corona.
China’s manufacturing manager’s index (PMI) of UK financial information and service provider Markit was 51.7 last June. Production in June was the highest in the last 13 months. But the index fell to 50.4 in July, well below expectations. Production also fell in Japan. Data released yesterday showed that Japan had the lowest output in July in the last 10 months.
Market analyst Tina Teng said that the first and main reason for the drop in oil prices is the disappointing decline in China’s production. He said, ‘The data shows that China’s economic activity has contracted surprisingly. This indicates that China’s economic recovery from the lockdown may not be as positive as expected. This has reduced the demand for crude oil in the world market. ‘
Source: Reuters
