New Delhi: The world is currently in a financial crisis. However, in the midst of this recession, there is news of relief for India. The price of crude oil has come down below 100 100 per barrel. Decrease in crude oil prices continues. Its price also fell on Thursday after reaching a three-month low in the last trading day. The fall in crude prices has raised hopes of cheaper petrol and diesel in the country. According to a report, crude oil prices have reached a nearly three-month low due to a steady decline. Oil prices also declined in early trade on Thursday. That’s because concerns over oil demand have risen amid fears of a possible global recession. Brent crude LCOc1 futures fell 71 cents to 99 99.98 a barrel. WTI crude CLc1 futures fell 62 cents to 97 97.91 a barrel.
Rise in US crude stocks
WTI crude was down 8 percent and Brent crude was down 9 percent on Tuesday. Stephen Ines, managing partner at SPI Asset Management, said new information and concerns about production and consumption are driving down oil prices. According to market sources, Wednesday’s figures show that US crude stocks have risen about 3.8 million barrels in the past week, while gasoline stocks have fallen 1.8 million barrels.
This will have an effect on petrol-diesel
Crude oil prices have risen sharply since the start of the Russia-Ukraine war. Crude hit a 2008 high of 139 139 a barrel. However, since then its price has dropped and now crude is back at 100 100 a barrel. According to experts, if the price of crude oil rises by one dollar internationally, the price of petrol and diesel in India will rise by 50 to 60 paise. Similarly, if crude prices fall, petrol and diesel prices are also likely to fall.
India buys more than 85% of its crude oil from abroad
The price of crude in the international market plays an important role in determining the price of petrol-diesel in India. Significantly, India is a major importer of crude oil and buys more than 85% of its crude oil from abroad. India has to pay the price of imported crude oil in US dollars. In such a scenario, the rise in crude oil prices and the strengthening of the dollar have an impact on petrol and diesel prices locally, which means that fuel is becoming more expensive. If the price of crude oil rises in the international market, so does India’s import bill.