Crude oil has come to boil and Brent’s price has gone up to the last 26 months and it is very close to $ 60. Crude oil prices have risen about 30 percent in the last three months. It is argued that crude global reserves have come down. OCED’s organisation of developed countries, crude reserves have fallen nearly 40 percent this year.
Let me tell you that 9 OPEC operators are cutting crude oil production. Saudi Arabia has made the biggest cut in production. While Libya, Nigeria, Iran, Angola have increased production. About 5.17 lakh barrels have been cut in daily crude production. OECD’s crude reserves dropped 40 percent this year. In January, the OECD’s stock was 34 million barrels. However, in August, the OECD stock has dwindled to 19 million barrels. Crude oil demand is expected to be 9.79 million barrels in the second quarter, while the supply during this period is estimated to be 9.7 million barrels.