Know what happens to crude oil, where does the effect of falling prices

Crude oil is a commodity that carries the economy of many countries around the world. Its cheap and expensive has a direct impact on the life of the common man. Due to this, the economy of the country is also affected. It not only helps in the growth of GDP, but it is also a means of earning for some countries. Around 924 million barrels of crude oil are consumed daily worldwide. Among the countries consuming it, China, America, Japan and India have more shares.

What is crude oil

Crude oil, or crude oil, has an important role in driving the wheel of the global economy. The crude oil found naturally is called crude oil. Actually crude oil is a dark colored liquid. It is a type of dark hydrocarbon substance that is found in the world, inside the sea and on land. Its history is 300 million years old. A minimum of 20 gallons of gasoline is used to make one barrel of oil. Crude oil is measured in barrels and one barrel is 159 liters.

Fraction distillation of crude oil gives kerosene, petrol, diesel, natural gas, Vaseline and lubricants etc. Crude oil is obtained only after refining it at an oil refinery. Which is a common process.

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Crude oil, where is the effect of decreasing its prices ……

How many types of crude oil is there? There are two types of crude oil (crude oil). One of which is Brent crude which is traded in London. The second is WTI, which is traded in the US. The crude oil that India imports is Brent crude. How Brent was named Brent crude oil is better recognized globally. It is named after Brent Grus, an American bird. Brent crude is extracted from the North Sea region. It is a mild sweet crude oil. According to the American Petroleum Institute (API), it has a density of 38–39. It has a very high sulfur content, which is higher than WTI crude oil. Brent crude was first produced from the Brent oil field. The Brent benchmark is used for pricing in around two-thirds of crude oil worldwide. WTI Crude Oil West Texas Intermediate (WTI) crude oil is most commonly used in the US. It is light due to its low API gravity and sweet due to low sulfur. It is used to make low-sulfur gasoline and low-sulfur diesel.

WTI is also a benchmark of the same kind as Brent crude. OPEC countries account for the largest share of 40 per cent in global production of crude oil, a major producer of crude oil. At the same time, North America has 17 percent, Russia 13 percent, China 5 percent, South America 5 percent and other countries 20 percent. While Saudi Arabia accounts for 32 percent of total crude oil production in OPEC countries, Iran and Iraq 19 percent, Kuwait 8 percent, UAE and Venezuela 16 percent and others 25 percent. In the next slide, know what happens to crude oil, where is the effect of decreasing its prices …… Crude consumption and imports in India India is the fourth largest crude oil consuming country in the world. Crude consumption is still increasing in India. The country consumes about 3.5 million barrels of crude oil daily. Crude oil consumption has grown by almost 40% in the last 10 years. India imports 80 per cent of its crude oil to meet its petroleum needs. Most of the crude oil is imported from Middle East countries like Iran, Iraq and Saudi Arabia. It imports 20.2 percent from Saudi Arabia, 13 percent from Iraq, 10.8 percent from Kuwait, 8.6 percent from Nigeria, 7.4 percent from the UAE, 5.8 percent from Iran and 34.2 percent from other countries. Benefits of decreasing crude oil prices: Oil companies reduce the prices of petrol and diesel when the price of crude oil falls in the international market.

Due to which the common man will get relief at the level of inflation. Where the freight will be reduced due to the fall in diesel prices. At the same time, the cost of public transport will also be cut. Because, the bus and airplane fare can be reduced which will facilitate the commuting. Apart from this, the prices of fruits, vegetables and ration etc. will come down. At the same time, the inflation rate in the country will be lower and the current account deficit will also be reduced. At the same time the import bill will come down and the subsidy burden of the government will also come down. In addition, paints, plastics, fertilizers and shipping companies will benefit from crude oil becoming cheaper.

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