On Monday, the Brent Crude futures prices jumped over $70 per barrel for the first since the covid-19 pandemic. The surge has been led by speaking demand from Asia and OPEC’s decision not to increase the production with small expectations, namely from Russia and Kazakhstan. Even the following reports of attacks on Saudi Arabia oil facilities and units.
In addition, the reports say- the future benchmarks for May have touched around $71.16 per barrel in early Asian trade. While on the other hand, the US WTI (West Texas Intermediate) reached around $67.86 per barrel for April. It is one of the highest benchmarks since October 2018.
In the recent report by Reuters, on Sunday, drones and missiles were fired by Yemen’s Houthi forces at Saudi Arabia’s Oil Industry. It also involved the Saudi Aramco facility at Ras Tanura vital to petroleum exports, where Riyadh referred to a failed assault on global energy security.
These updates were the main reason for surging prices the moment the Market opened on 8th March 2021. The allies decided to keep the production cuts unchanged in April’2021, and it’s up for the fourth consecutive session after OPEC.
Even though the oil prices are rising, the oil minister has voiced about on-demand recovery without any hesitation. Moreover, the fuel prices are also revised on a daily basis by oil companies and the rupee’s exchange rate in accordance to the foreign markets.
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