New Delhi: Crude oil fell in Asian deals on Friday after US President Joe Biden announced to release 1 million barrels of oil per day for six months starting in May to check rising prices following the Russia-Ukraine crisis. I.
At 1030 am, Brent’s May contract was at $104.42 on the Intercontinental Exchange, down 0.28% from its previous close. West Texas Intermediate (WTI) May contract fell 0.57% to $99.71 a barrel below $100 a barrel on the NYMEX.
However, analysts said the fall in prices would be limited as the planned US release is not enough to offset Russian supplies.
According to the International Energy Agency, Russia is the largest exporter of oil to global markets and the second largest crude exporter after Saudi Arabia. In December 2021, it exported 7.8 million barrels per day.
Oil prices were rising even before the Russia-Ukraine conflict, as demand eased as it struggled to curb the pandemic and maintain supply. However, West’s sanctions on the Kremlin following the invasion of Ukraine pushed the global benchmark Brent to a high of $139.13 a barrel, the highest since 2008.
Since then prices have come down largely as concerns about demand following a fresh surge in Covid-19 cases in China and curbs on mobility in major cities.
Back home, the oil market companies did not change the prices of petrol and diesel. There has been an overall increase in fuel prices 6.40 per liter from March 22 in the national capital.
Petrol is now sold in Delhi 101.81 per liter, while the retail sale of diesel 93.07. Given the significant gap between domestic and global prices, the increase in retail prices is expected to continue.
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