Global Brent crude oil prices and how it is affecting Indian fuel price

NP NEWS 24 ONLINE – With global brent crude oil prices have fallen significantly over the last six weeks from $86.29 to $63.3 per barrel, Indian petrol and diesel prices have seen some correction while the rupee has strengthened against the dollar.

Between October 3 and November 21, while brent crude prices decreased by 36.31% to $63.3 per barrel, the prices of petrol and diesel in Delhi decreased by 8.9% and 5.28%, respectively.

Petrol, which was selling at Rs 83.85 per litre on October 3, was at Rs 76.30 on November 21. The price of diesel, Rs 75.25 on October 3, was down to Rs 71.27 on November 21.

US President Donald Trump’s insistence on lower oil prices, his Iran sanctions and a US-China trade war seem to have helped temper oil prices in recent times. A relentless rise in crude oil price that took it above $86 a barrel on October 3 was fuelled by fears that US sanctions on Iran may not allow many waivers, leaving Saudi and other producers struggling to fill the gap after significant Iran supply goes out of the market.

But Donald Trump surprised many by liberally distributing waivers that allowed India and seven other countries to continue to import from Tehran. This, along with a surge in crude output put at three biggest producers—US, Russia, and China—set the stage for a sharp fall in prices. The US is now the largest producer of crude oil.

During the same period, the rupee became stronger against the dollar by 2.64%. One dollar was equivalent to Rs 71.30 on November 21. Various factors led to the decline in crude prices.