The prices of the guar move in direct proportion to the crude oil prices. The drastic decline in crude oil prices created a direct decline in the prices of guar gum powder. \u00a0The drop in global crude prices led to decreased shale exploration and a fall in demand of the guar gum powder<\/a>.<\/strong><\/p>\n The prices of intermediate crude from west Texas fell from approximately $ 110 per barrel to $ 50 per barrel also created a major effect on importation of guar gum products<\/a><\/strong>.<\/p>\n Ware Housing <\/strong><\/p>\n The accumulation of supplies in the oil companies\u2019 stores also contributed to the decline in the price levels. \u00a0The establishment of warehouses by Indian businesspersons in the United States, and the subsequent build up of stocks also contributed to decrease in demand.<\/p>\n Oil Rig Count <\/strong><\/p>\n The number of oilrigs in the United States reached six hundred and fifty two in the third week of March 2017. This is the highest level from September 2015. There has been a direct and positive correlation between the active rig count and the crude prices.\u00a0 A closer analysis at these trends shows that when the crude prices hit the bottom, the number of operational rigs also dropped to minimum. Oilrigs require the guar gum powder<\/a><\/strong> for lubrication of the drilling process, and therefore its demand is in direct proportion to the performance of the rigs.<\/p>\n![\"Guar](\"https:\/\/www.altrafine.com\/blog\/wp-content\/uploads\/2017\/05\/guar-gum-market-correlation-with-crude-oil-prices-for-2016-2017-period.jpg\" "\\"Guar")
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