Oil prices are bucking the trend and declining as producers take a pragmatic approach amid concerns over the global economic slowdown history most of this month, oil prices have dropped, causing many people to leave - how?
Fun Fact: Gasoline and diesel prices have dropped by 1.34 rupees per liter and 1.08 rupees per liter since the beginning of October last month, Yemeni rebels attacked Saudi Aramco with drones - the largest oil producer in the world. And almost immediately you had hordes of people (including us) who suggested that oil prices were going up. Think about it.
These people accounted for about 5% of world oil production. Disruption of supply should drive prices up, right? It turns out that it does not work that way. Do not get me wrong, the Yemeni rebels have done harm. People actually woke up to the realization that we could consider supply disruptions amounting to millions of barrels of oil almost instantly, and were more cautious in pricing for oil.
This is also one of the reasons why oil prices rebounded immediately after the attack. Since then, however, more and more carnal fears have cast a spell over the heads and spirits of the oil traders (individuals responsible for determining your daily price).
If these good people were convinced that growth prospects are not too rosy in the near future, they'll probably start to think, "Hey, if the economic engine stops chugging, who will buy oil? And even then, will they really buy as much as they used to? This shift in expectations can affect prices. And the more people are interested in this story, the lower the prices tend to be.
At least until one of the major oil producers intervenes and says, "Guys, we'll cut production soon."And then the narrative shifts. With new expectations of a decline in supply, more people will hire to buy oil, which in turn drives up prices and continues the cycle.
At the moment we are at a point where everyone is upset about the future economic outlook. And with all the mischief and darkness, there are not many people who are optimistic about oil prices. Hence the drop. There is also this other claim that the slowdown in our country could also support the decline.
Indeed, there were reports yesterday that India's fuel demand for a drop in diesel and industrial fuel consumption in September had dropped to its lowest level in more than two years. Huch !!! Oh, actually wait. That is a good thing.
At least for ordinary people like us.