After falling continuously during the last week, crude oil prices rose in the previous week. This is the first time in about a month that crude oil prices have strengthened every week. In addition, crude oil has returned from its lowest level in about three years.
Prices Fell So Much On Friday
Crude oil prices fell slightly on Friday, but a good rise was seen for the week. On the last day of the week, Brent crude fell 36 cents or 0.5 percent to close at $71.61 per barrel in the foreign market. On the other hand, West Texas Intermediate crude fell 32 cents or 0.5 percent to $68.65 per barrel. In the domestic market, crude oil on the Multi Commodity Exchange (MCX) fell 0.46 percent to Rs 5,782 per barrel on Friday.
This Much Recovery Happened every week.
Overall, crude oil prices rose during the week. Brent crude rose by 0.8 percent and West Texas Intermediate by 1.4 percent. However, on Tuesday, crude oil fell below $70 per barrel for the first time in over three years. After that, a recovery was seen in crude oil prices for three consecutive sessions.
This Is How Crude Oil Prices Have Fallen
The demand for crude oil has remained weak for the last several months, so its price is continuously falling. Even after last week’s recovery, crude oil is cheaper by about $10 per barrel this month. A few months ago, in April, crude oil had reached a high of $90 per barrel. During the next 5 months, the price of crude oil fell by more than 22 percent.
Cyclone Brought Relief For A Few Days
However, the future outlook for crude oil still does not look good. The main reason for the rise in prices last week was Hurricane Francine, which affected crude oil production in the Gulf of Mexico. After the cyclone subsided, production started becoming normal from Friday; then crude oil fell again that day. Demand remains weak for the largest consumer in China. Recently, the IEA reported that the demand for crude oil will remain weak globally, including in China. In such a situation, there may be pressure on the price of crude oil in the coming days.
