Historic decline in Brent oil: Why is oil falling?

2024-09-08 22 views Reading Time: 2min, 30sc

Brent oil fell to $70 due to concerns about calmness in global markets.

The decision of the OPEC+ group, which consists of the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producer countries, to postpone the increase in production due to the decrease in prices caused an increase in the markets. It was said that the problems in production costs experienced in America and the expectation of stagnation in global markets also caused a decrease in Brent oil. The barrel price of Brent oil is at $70 as of 20:15.

How many dollars is Brent Oil?

Rising to $74 in the markets yesterday Brent oil barrel price,It finished the day at $72.70. Brent oil, which lost 2 percent of its value after the close, dropped to $70.

Why is oil falling?

Brent oilPrices may fall due to many factors. It is stated that these factors may be caused by changes on both the supply and demand sides.

1. Surplus Supply

Production Increase:It is said that if OPEC or other major oil producing countries increase production, this could increase the supply of oil in the market and cause prices to fall.

Shale Gas and Oil Production:It was stated that the increase in shale gas and oil production, especially in the US, could reduce Brent oil prices by increasing global supply.

New Oil Reserves:It was also announced that the discovery and production of new oil reserves could cause excess supply in the market.

2. Demand Drop

Economic Calm:It was mentioned that the calmness or slowdown in global economies could lead to a decrease in oil demand, causing prices to fall.

Energy Efficiency:It has been announced that the increased use of electric vehicles and renewable energy sources could reduce oil demand.

Pandemics or Crises:It was stated that global health crises such as Covid-19, travel restrictions and contractions in the industry could significantly reduce oil demand.

3. OPEC Policies

Harmony Problems of OPEC+ Countries:It was stated that the incompatibility between OPEC and non-OPEC oil producing countries (OPEC+) could lead to some countries exceeding their production quotas, creating excess supply in the market.

Inadequacy of Production Cuts:It was stated that even if OPEC implements production cuts, if these cuts are not sufficient or are seen as temporary, there may be pressure on prices.

When is the discount on diesel?

It was stated that vehicle owners were expecting a reduction in fuel, diesel and LPG prices after Brent oil prices dropped to 70 dollars.

When will gasoline be discounted?

On September 6th 1.84 TL discountIt is assumed that there may be a discount again after the decline in oil prices.

When is the LPG discount?

It was mentioned that there may be a decrease in LPG prices due to fluctuations in Brent oil prices and foreign exchange rates.

Istanbul European side fuel prices

Gasoline price: 43.31 TL

Diesel price per liter: 43.23 TL

LPG liter price: 25.13 TL

Istanbul Anatolian side fuel prices

Gasoline price: 43.20 TL