Crude oil is 18 percent cheaper due to the signs of increasing UAE's production, crude oil has come down to $110 per barrel

Crude oil prices in the global market fell by 18 per cent from record levels on a signal from the United Arab Emirates (UAE) to increase production. With this fall, Brent crude came down to around $114 and the US benchmark WTI (West Texas Intermediate) at $110 a barrel on Thursday.

Actually, due to the ongoing war between Russia-Ukraine, the supply of crude oil has been affected. Due to this, crude oil reached a 14-year high of $ 139.13 per barrel on March 7, 2022.

Amid the supply crisis, the UAE ambassador said he was in favor of increasing production to arrest the rise in crude oil prices. After this statement, Brent crude fell by $2.53, or 2.28 percent, to $113.67 a barrel. WTI fell $1.64, or 1.51%, to $110.34.

India will get relief

India will benefit more from UAE's decision to increase crude oil production. India imports 85 per cent of its crude oil consumption. Recently, the price of crude oil had reached $ 139 per, due to which there is a possibility of a big increase in the prices of petrol and diesel in the country.

According to an estimate, the government oil companies are incurring losses due to the decision not to increase the retail price of petrol and diesel despite the increase in crude oil prices.

Expected to increase production by 8 lakh barrels

Experts say that the UAE can immediately increase the production of 8 lakh barrels of oil. This will make up for a seventh of the supply shortfall from sanctions imposed on Russia. In the coming times, supply from Iran is also expected to increase, which is expected to provide further relief on the crude oil price front.

Negative impact on demand

Producing countries also fear that the rise in oil prices will have a negative impact on demand. Experts said, if the economy slows down due to expensive crude, then crude oil prices will fall further. So OPEC countries can increase production.