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Why the crude oil price today is rising worldwide? America can solve this issue if it wants

Nov 26, 2021: Prices of crude oil is rising worldwide. The price of petrol, diesel and cooking gas has also gone up due to this reason. According to 2019 data, the price of petrol was Rs 108 to 110 and now it has reached Rs 136. The per liter diesel of Rs 97 reached Rs 119 now. Cooking gas increased from 1,350 Rs to 1,575 Rs today.

This situation of rising prices of diesel, petrol and cooking gas will make a negative impact on consumers and businesses and economy can go down. Oil supplies is not matching according to the demand because travel and construction are increasing with the reopening of the world economy.

Why are petrol and diesel prices increasing?

crude oil price today
crude oil price today

Brent crude is the world’s most widely used oil benchmark. Its price was $42 per barrel a year ago and now reached $76 which is very high since 2018. The world economy is booming and the oil demand is increasing after the global epidemic. In this situation, demand is very high and supply is low. Crude oil price today affects the global vehicle industry to think to produce more vehicles or not because it goes like this consumer will shift to a further solution.

OPEC is the organization of the petroleum exporting countries (OPEC). Despite It having pledged to increase oil production to 400,000 barrels a day by November, It is still less than the global demand. Due to the coronavirus epidemic, countries including OPEC cut oil production by 2020 which became a game of keeping oil supply low and increasing the demand.

China, India, and other nations have appealed to boost up oil supplies. If OPEC nations continue to cut oil supplies below demand, there could be a rise in global inflation, and the whole global economy could plunge into recession. The even United States has kept its oil production and supply below the consumer’s demand.

On the other hand, some entrepreneurs in Nepal are focused on developing electric-based vehicles keeping the situation of petroleum products in mind. Prime Minister Sher Bahadur Deuba had encouraged entrepreneurs to support developing electric materials and to move electric-based products and vehicles to save the environment and decrease the consumption of oil products. As long as the world economy depends on crude oil, there is no way for other countries to better than to tolerate OPEC nations.

Will the price go up or down now?

petrol price today
Petrol manufacturing in the center of sea

The demand for oil and gas will be high during the winter season in the United States and Europe. Oil and cooking gas price depends on it. If 2 of the OPEC nations and America increase the supply, its price will go down but this possibility is low. OPEC countries recently decided to increase only average supplies for oil and gas.

The United States has been forcing other OPEC countries to increase their oil supplies but not increase their own. The physical infrastructure of the fresh supply pipeline from Russia has been completed but Europe has not approved this project yet. Russia will supply huge quantities of gas to Europe if this project starts and this can bring down the price of gas worldwide. But some European countries are still opposed to this project.

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