The price of Brent crude oil on the London exchange has dropped below the psychological level of $60 per barrel. This is the most significant decline in quotations since mid-December of last year. Trading dynamics indicate that the market is reacting to a slowdown in global industry and a temporary surplus of raw materials in storage facilities, TASS reports.

For consumers and businesses, falling oil prices are a positive signal. Oil is the main resource for the production of gasoline, diesel fuel, and aviation kerosene. When crude becomes cheaper, logistics and transportation costs decrease, which directly affects the cost of delivering goods. In the long term, this helps restrain price growth for products and services in stores.

Analysts are currently monitoring how long prices will remain at this level. If oil prices stay low, this will provide an additional stimulus to the global economy and allow companies to reduce production costs.

ORIENT