Crude Oil Price: Oil fell by more than 5 per cent on Wednesday, posting the steepest loss in the first two days of any year for over 3 decades. The fall could be anticipated to worries about fuel demand as the global economy slows and Covid-19 cases rise in China.

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Brent futures settled at $77.84 a barrel, falling $4.26, or 5.2 per cent. U.S. crude settled at $72.84 a barrel, shedding $4.09 or 5.3 per cent. Brent has fallen by about 9.4 per cent this week.

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According to Zee Business Managing Editor Anil Singhvi, the fall in oil price was due to fundamental reasons. He said that one of the reasons for the fall is lower demand due to global recession worries. Also, fall in demand from China and rising Covid-19 cases spooked the traders.

Besides the global economy and Covid concern in China, the central banks rate hikes also weighed on crude prices.

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Singhvi said that the Organisation of the Petroleum Exporting Countries (OPEC) had tried controlling the supply to hike Crude Oil prices but that did not work. He said that the price did not cross $100 barrel.

Singhvi said that price can see an upward trend only after China’s demand is back on track and secondly, if Russian oil is restricted directly or indirectly. He added that the case of restriction on Russian oil will be temporary as the country is one of the largest exporters.

He said that if crude prices hovered around $60-70, it will be beneficial for India as the country's import bill has crude oil as the biggest expense.