The increasing cases of corona virus in China has created a situation of uncertainty in the markets around the world.
Crude Prices Falling
Increased cases of corona virus in China have created a situation of uncertainty in the markets around the world. On Monday, its impact has been seen as a weakness in the domestic and global markets. At the same time, due to the sudden decrease in demand in China due to virus outbreak, crude has also fallen more than $ 6 in 5 days to 58.50 dollars per barrel, which is a low of about 2 months. Expert says that whenever there have been cases of virus attack on such a large scale, there has been a big drop in crude. If there is an increase in the case of viruses, then crude can come back to the level of 55 to 56 dollars per barrel. Due to this, the price of petrol and diesel can also fall by Rs 4 per liter in the coming days.
Over 2700 cases in China
Please tell that more than 2700 cases of Corona virus have been reported in China so far. At the same time, about 80 death cases have been reported in this case so far. Apart from China, 5 cases have been confirmed in the US as well. Apart from this, cases have also been reported in Singapore, Canada, Japan, Malaysia, South Korea, Australia, France and Vietnam.
Commodity investors’ sentiment deteriorated
Experts say that China is the second largest consumer of crude oil in the world, where public transport has been stopped in many cities due to the outbreak of Corona virus. Due to this, there has been a sudden drop in demand for crude oil there. Globally, China has a 19 percent stake in the purchasing power parity in the global economy, which was 9 percent in 2003. Because of this, prices have suffered a major setback due to reduced demand for crude in China. At the same time, due to the corona virus, China’s economy will also have a negative impact, due to which the sentiment of equity investors along with equity has deteriorated.
Crude can break from 55 to 56 dollars
Ajay Kedia, director of Kedia Commodity, says that China is the largest consumer country in the world in terms of commodity. The way the Corona virus has been affected in China in the recent past, the prices of crude to base metal and agri products like cotton and soy have come down. Crude oil demand has suddenly fallen in China. Due to which the balance of demand and supply has deteriorated and prices have come down drastically. If the same atmosphere prevails for the next few days, then crude may go from 55 to 56 dollars per barrel.
Petrol and diesel will be cheaper
Talking about this month, petrol and diesel have fallen by about Rs 2 per liter from the upper levels. Anuj Gupta, deputy vice president (commodity and currency), Angel Broking, says the Corona virus has affected transportation and business in China. Due to which the demand for crude oil has weakened. There is a possibility of further demand falling due to which investors are also scared. Because of this, there has been a big drop in crude which can continue. If this happens, the prices of petrol and diesel will also be reduced in the same proportion. Kedia says that petrol and diesel can be reduced by Rs 3 to 4 per liter.