Crude oil prices fall in the international market, know when the common man will get cheaper petrol-diesel
New Delhi: The government and domestic oil companies could not get any better news than this from the international market. For the first time in nearly three-and-a-half months, international crude oil prices have softened. In the last four days, the price of crude oil has come down from 9 119 per barrel to 11 113 per barrel. Crude oil for July delivery was trading at 10 109 per barrel, indicating that it may fall further. However, the general public is yet to get the benefit of this deduction. If prices continue to soften and crude remains below 100-100 per barrel for at least three to five weeks, oil companies will get some relief from the current retail price of petrol and diesel.
Brent crude, the benchmark for the global crude oil market, was at ₹ 112.99 per barrel on Monday. Last Friday it was trading at 9 119.16 per barrel and last Monday at 3 123.15 per barrel. This is a drop of over 7 per cent from the previous week. The fall was attributed to Monday’s rally in the Indian stock market. The fall in crude oil prices is one of the main reasons for strong global slowdown expectations. Notably, the manner in which the US Federal Reserve has decided to hike interest rates by 0.75 per cent in a jiffy, is expected to dampen demand. This may also affect the demand for crude oil.
If prices fall further, the deficit will be covered
Officials of state-owned oil companies have said that there will be no change in the prices of petroleum products in the country in a few days. The general public will get relief only if crude oil prices remain below 100-100 for a long time. Despite the reduction in excise duty on petrol and diesel by the central government in May 2022, oil companies say they are selling petrol at a loss of Rs 9 per liter and diesel at Rs 15 per litre. This gap will narrow only when crude oil prices fall further. There is a ray of hope in the futures of crude oil in July. The world’s largest crude oil exchange is trading at 10109 per barrel for July.
Supply will decide the mood of the market
The International Energy Agency (IEA) has warned that the current energy price cannot be kept high, given the state of global demand. The mood of the crude oil market will be determined by the supply in the coming weeks and months. It remains to be seen to what extent Russia succeeds in increasing its production and supply of crude oil and gas.
Prices have changed since May 22
There has been no change in the prices of petroleum products in the domestic market after 22 May 2022. At that time, petrol in Delhi had come down from Rs 105.41 to Rs 96.72 per liter and diesel from Rs 96.67 to Rs 89.62 per liter in a day due to reduction in excise duty.