Tuesday, 16 Apr, 2024

Business

US, China begin refilling depleted oil stocks, price may rise

News Desk | banglanews24.com
Update: 2024-02-16 11:55:35
US, China begin refilling depleted oil stocks, price may rise Photo: Collected

Despite the price of fuel oil is stable in the world market at this moment, it may rise again.

The United States, China and Europe have begun refilling depleted oil reserves. As a result, the demand for fuel oil will increase again in the world, which may lead to an upward trend in the market.

In addition, the conflict in the Middle East and attacks by Houthi rebels in the Red Sea pose a threat to the oil supply system.

A report by the Reuters news agency has made such a claim.

The report also says that when Russia attacked Ukraine in February 2022, the United States and Europe imposed an embargo on the country's oil. This reduces the supply of Russian oil to the world market.

On the other hand, the Organisation of the Petroleum Exporting Countries, led by Saudi Arabia, also announced production cuts.

In this situation, when the price of oil increases in the world market, some countries, including the United States, start releasing huge reserves to keep the market stable. Then the oil market returns to normal.

But now that demand for oil is low and markets are stable. That’s why, the US, China and Europe are replenishing their depleted reserves. This will increase the demand for oil.

Now the situation is getting odder for the Red Sea war situation. Attacks by the rebel group Houthis have almost stopped shipping there. This is an important route for the export of fuel oil. That’s why, the price of oil may increase due to the fear of supply disruption.

BDST: 1155 HRS, FEB 16, 2024
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