The effect of corona virus is now beginning to be seen on the supply of crude oil in the world. Saudi Arabia, the world’s largest oil exporter, cut oil supplies for several of Asia’s biggest buyers for March. 4 sources related to the whole case said that this decision has been taken by the refining companies after the reduction in production. According to industry sources, production has been reduced due to corona virus and regular maintenance. The decision to reduce supply came after Saudi Arabia’s largest oil company Aramco cut the selling price for March more than expected.
A source associated with Aramco said that there has been a decrease in the nomination of oil buyers for March. One reason for this is the corona virus, but due to maintenance it has also happened. However, sources declined to say how much the oil supply has been cut. However, it must be said that 10 per cent less can be supplied by Chinese company Aramco to Chinese buyers.
1,100 people died in China due to Corona: Chinese refining companies Sinopec Corporation, PetroChina, China National Offshore Oil Company and many other refineries have cut the crude processing rate. Please tell that 1,100 people have died so far due to the spread of corona virus infection in China. In addition, more than 30,000 people are sick due to this virus.
China’s economy going through recession: The world’s second largest economy is going through a recession due to the Corona virus, dubbed an epidemic by the United Nations Health Organization. Significantly, due to the Coronay virus, the prices of crude oil are also continuously falling.