Due to the weakening of US dollar against the major currencies of the world, countries buying crude oil are getting oil cheaper. America's Energy Information Administration (EIA) has given this information on Friday.

Crude oil is traded in US dollars only, due to which the oil is getting cheaper for those countries whose currency has strengthened against the dollar. Countries in the eurozone are also included in this. Among them, there are many countries which import crude oil. Between June 1 and August 12, Brent crude oil prices have increased by 19 percent.

But according to EIA estimates, due to the increase in the price of the euro against the dollar, this increase in the euro has been only 12%. For the past few months, Brent crude oil prices and dollar prices have been rising in opposing directions.

While Brent crude oil is getting expensive, the dollar is weakening against global currencies. In recent weeks, global demand for crude oil has been projected to decline due to the impact of the epidemic, but the weakening dollar has only supported oil prices.

The weak US dollar means that oil buying countries are getting cheaper. According to the EIA list report this week, 4.5 million barrels of crude oil have been extracted in the week till 7 August. At the same time, seven lakh barrels of gasoline and 23 lakh barrels of distillate fuel have come down from the list.

This has led to an increase in oil prices. This oil shortage caused oil prices to rise slightly, but the International Energy Agency and OPEC have lowered their oil consumption estimates for this year and acknowledged that the global impact on the Corona epidemic will be much higher than anticipated.

(Click here for Android APP of IBTN. You can follow us on facebook and Twitter)

Share This News

About sharing