Washington: Soon, the biggest drop in oil prices can be seen in the world amid the silence of the corona virus. Analysts say that Saudi Arabia is preparing to increase its oil production even after a big drop in global demand for oil. There is no space left for storing oil in many countries of the world. In such a situation, the supply of oil will increase while the demand will decrease and this will directly affect the prices of oil in the global market.
Since the closure of all refineries in January in the month of Coronavirus infection in China, on average, oil reserves around the world are three-quarters full. The oil industry will have to store oil in the coming weeks and months amid the Corona epidemic all over the world. This is because the consumption of natural resources including oil has reduced in all countries. India is the third-largest consuming country in Asia after China and Japan, but there has also been a huge decline in oil consumption due to the lockdown here.
According to analysts at energy consultancy Ristad Energy, due to domestic production in Canada, oil reserves can be filled in a few days. The rest of the world will also have to face such a challenge in a few months. Due to problems in oil storage, the supply of oil in the market will increase further.
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