Crude oil prices came under pressure as demand slowed despite production cuts

- Global market bounces but not sustained: In India, however, demand is likely to pick up in the October-March period.

The world market of crude oil has recently seen a significant surge in prices. There are indications from the global market that crude oil prices are rising but not lasting and the trend is likely to be bullish. The Organization of the Petroleum Exporting Countries (OPEC) and its allies recently indicated that they will cut daily production by around two million barrels from November. Following such a signal, there was a flash of bullishness in crude oil prices in the world market. But this boom could not be sustained and prices have been seen falling back from the highs. In fact, lower-than-expected demand is the main reason crude oil prices remain under pressure, according to forecasts. Inflation has been increasing at the global level and due to this, interest rates have been increased by six weeks by the central banks of various countries of the world. Due to the increase in such interest rates, the economic development at the global level has been hampered and as a result, its negative impact has been seen on the demand for crude oil in the world market. In such an environment, the rise in the price of crude oil is short-lived and the market flows are showing overall weakness, world market informants said. The effect of increasing oil supply in America has also been seen on the world market. China's new demand has also slowed down. Corona cases have increased again in China recently. The pace of economic development has also slowed down there. This has also had an adverse impact on crude oil prices. China is considered a key buyer in the world market of crude oil. With the delay in the release of China's GDP figures recently, the global crude oil market has become increasingly agitated over this issue and various debates about China have flowed in the market.

Meanwhile, in India the import cost of crude oil imported into the country has gone up as the rupee tumbled against the dollar in the currency market. However, after the crude oil producing countries have reduced production, the news has also come out that the buying of portfolio investors in the crude oil futures and options market has increased in the world market. Due to this, global prices have recently moved higher but market prices have come back under pressure as physical demand has slowed. In America, crude oil production is increasing in Texas and New Mexico. The Energy Information Administration of America has predicted that such daily production will increase by approximately five lakh barrels in November and reach a record level of 54 to 55 lakh barrels in the world market. Meanwhile, in the period after production cut by OPEC, Saudi Arabia signaled to reduce the price of oil for Asian buyers, there was a special surprise in the world market! In the US, inflation has recently broken a 40-year record high, and as a result, interest rate hikes are likely to be more aggressive in the future. In such an environment, the global index of the dollar increased and reached a peak of twenty years, increasing the pressure on the prices of various global commodities, including crude oil, market informants said. Saudi Arabia's major oil producer has also decided to maintain rather than cut supplies to Asia in November! Meanwhile, various global institutions, including the International Monetary Fund, have signaled a further slowdown in global economic growth. Due to this, the demand of crude oil in the world market is expected to be slower than expected in the quarters of October, November and December. However, the demand of crude oil in India in the quarter of October to December has increased by approximately 7 to 8 percent and the experts are showing the possibility of being 53 to 54 lakh barrels per day! Forecasts have shown that such demand will remain high from January to March next year! Meanwhile, the United States has sold oil from its reserves. New York crude prices were lower at 83 dollars per barrel and Brent crude prices were lower at 91 dollars.