After touching the lowest levels 2016 in January, the Crude oil prices climbed up to 50 Dollar/ Barrel in May month and India may face difficulties due to these hikes. All eyes on the 2nd June’s OPEC meeting, that is going to happen in Vienna. If all board members agree to reduce the crude oil production, then crude oil prices may hike up to 60 Dollar/Barrel. In that situation, the price of petrol and diesel may go up by 3-4 rupees in the domestic market.

Nigeria is the biggest oil producing country in Africa and a few days back some terrorists have blown up the oil pipelines in Nigeria. This Nigeria Distress is one of the main reasons for Crude oil price hike. According to the updates given by Bloomberg Media, the oil production in Nigeria has been dropped by 6 lakh barrels and went down to 16.9 per day, which is the lowest level of the last 20 years.
Terrorists have shut down the forcados terminal of Shell company which had the capacity to export 2.5 lakh barrels per day. They have also closed the Chevron’s 1.6 lakh barrel capacity terminal.

According to the information given by US energy, Crude production will be dropped by 1.13 barrels per day in May month in the US. In May and June, Crude oil production will 48.5 lakh barrel per day in America. As per the latest data from US energy department, there will be only downterm trend in upcoming crude oil production.

Due to the fire distress of Alberta forest in Canada, most of the oil sands in Canada have been closed, and so Canada is unable to supply crude in Global Market.

In China, the crude oil production has been dropped by 5.6% and remained only 1.66 crore ton. This is the lowest level after the February 2015. According the the data given by the National Bureau of Statistics, the biggest production reduction we are seeing in April.

Indian Energy experts say that Crude oil prices will averagely remain around 50 $/barrel till the Diwali festival. In the next few months, crude oil may also touch the level of 60 $/barrel, but unable to justify the crude oil demand and supply at present. The Canada’s and Nigeria’s situation are unsustainable and very soon we will see the crude oil oversupply in the market. Currently, Crude oil is trading at 3231 with the loss of 89 points that is approx 2.68%.