Due to tight supply from Russia and Saudi Arabia, there has been a rise in the price of crude oil. If we include the increase of one percent on Tuesday and half percent this morning, then till now an increase of more than one and a half percent has been seen. Brent crude of Gulf countries has once again crossed $ 94 per barrel.
On the other hand, the price of American crude oil has reached close to $91 per barrel. According to experts, the price of crude oil may increase further in the coming days. Bank of America to JP Morgan have claimed this in their reports. Although there is a concern about the demand decreasing due to the increase in the dollar index, the effect of the demand coming from China can be clearly seen in the prices of crude oil.
On the other hand, there has been no change in the prices of petrol and diesel in India. The prices of petrol and diesel are the same in the metropolitan cities of the country as well as in other cities. According to the data, the last market change in the prices of petrol and diesel was seen in May 2022. Even after that, the price of crude oil came down to $70 per barrel, but the fuel was not made cheaper.
It was claimed by the oil marketing companies that even though the prices of crude oil remained high, the price of fuel was not increased, due to which they suffered huge losses. To compensate for this, prices were not reduced. OMC has now come into profit. 3 to 4 months have passed since then and OMC has not reduced the prices of petrol and diesel. Let us also tell you what are the prices of petrol and diesel in the major metros of the country?
Crude oil price rises
Due to tight global supply, there has been a rise in the price of crude oil. Brent crude futures were up 59 cents, or 0.63 percent, at $94.55 a barrel. Brent crude closed up 67 cents, or 0.7%, at $93.96 a barrel on Tuesday. US West Texas Intermediate crude futures are up 60 cents, or 0.66 per cent, at $90.99. On Tuesday, WTI prices closed at $90.39, up 71 cents or 0.8 percent. This means that from Tuesday till now the price of crude oil has seen an increase of about one and a half percent i.e. more than $ 1.25 per barrel.
On Monday, Russia relaxed its gasoline and diesel export ban. Exports of products already accepted by Russian Railways and Transneft can go ahead, while high-sulfur gasoil and fuel used for bunkering will be exempted from the ban. But the ban on export of high quality diesel and gasoline remains in place.
This is why supply is tight
Russia and Saudi Arabia have extended production cuts until the end of the year. Due to which the supply of oil has become tight. Oil broker PVM analyst Tamas Varga said that in the near future, demand is likely to be less than supply of oil and therefore any weakness, even if it is very surprising, will not last. The world's top central banks, the US Federal Reserve and the European Central Bank, have reiterated their commitment to fighting inflation in recent days, indicating that tight monetary policy may continue for longer than previously thought. High interest rates slow economic growth, which reduces demand for oil.
Fear of decline in demand due to rise in dollar
Andy Lipo, president of Lipo Oil Associates LLC, said refined products remain under pressure as fears of prolonged high oil prices combined with higher interest rates could reduce demand. Limiting gains, the US dollar hit a 10-month high on Tuesday. A strong dollar usually impacts oil demand because it is much more expensive for importers against their local currency.
Petrol and diesel price in India
On the other hand, there has been no change in the prices of petrol and diesel in India. The last change in the prices of petrol and diesel in the metropolitan cities of the country was seen on May 21. At that time, the country's Finance Minister Nirmala Sitharaman had reduced the tax on the price of petrol and diesel. After that some states tried to influence prices by reducing or increasing VAT. The interesting thing is that ever since the prices of petrol and diesel started changing daily in the country as per the international market, this is the first time that petroleum companies have not made any changes during the record timeline.
Price of petrol and diesel in major cities of the country
New Delhi: Petrol rate: Rs 96.72 per liter, Diesel rate: Rs 89.62 per liter
Kolkata: Petrol rate: Rs 106.03 per liter, Diesel rate: Rs 92.76 per liter
Mumbai: Petrol rate: Rs 106.31 per liter, Diesel rate: Rs 94.27 per liter
Chennai: Petrol rate: Rs 102.63 per liter, Diesel rate: Rs 94.24 per liter
Bengaluru: Petrol rate: Rs 101.94 per liter, Diesel rate: Rs 87.89 per liter
Chandigarh: Petrol rate: Rs 96.20 per liter, Diesel rate: Rs 84.26 per liter
Gurugram: Petrol rate: Rs 97.18 per liter, Diesel rate: Rs 90.05 per liter
Lucknow: Petrol rate: Rs 96.57 per liter, Diesel rate: Rs 89.76 per liter
Noida: Petrol rate: Rs 96.79 per liter, Diesel rate: Rs 89.96 per liter
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