New Delhi: Global benchmark Brent crude on Wednesday rose to $113 a barrel as sanctions force a US-led initiative for a coordinated release of 60 million barrels from emergency reserves of 31 International Energy Agency (IEA) member countries. not affected by. Consumers should stay away from Russian oil.
Brent, which accounts for 50% of globally traded oil, was last seen at this level in July 2014.
India’s crude oil cost also rose $2 to $102/barrel since March 24 as Brent makes up 25% of barrels bought by domestic refiners, triggering a fuel price shock after the last phase of polling in UP on March 7. It became inevitable.
Crude oil prices in India stood at $83 a barrel on November 4, when the Center cut excise duty on diesel by Rs 10 and petrol by Rs 5 to provide relief ahead of elections in five states. Pump prices have remained unchanged since then under an unofficial government decree.
political expediency to keep fuel prices Will end with voting in check. With the dollar strengthening at Rs 75.49, the gap between the cost and retail prices of petrol and diesel is large enough to allow the freeze to continue without hurting the bottom line of retailers.
Even though Russia has said it will not reduce energy flows to Europe and elsewhere, US sanctions and the removal of Moscow from SWIFT, the global inter-bank messaging system for transactions, are creating barriers to shipping and insurance.
This is forcing many consumers to look to West Asia for alternative supplies. This is where the crisis could occur as the OPEC+ group, including Russia, but dominated by West Asian producers, does not have much spare capacity.
At Wednesday’s ministerial meeting, the group decided to increase monthly production by 400,000 barrels/day as planned.
The group said after its meeting that the rise in prices was not due to any change in market fundamentals but due to “geopolitical situation”.
No wonder US President Joe Biden’s announcement to release 30 million barrels failed to calm the oil market.
Brent, which accounts for 50% of globally traded oil, was last seen at this level in July 2014.
India’s crude oil cost also rose $2 to $102/barrel since March 24 as Brent makes up 25% of barrels bought by domestic refiners, triggering a fuel price shock after the last phase of polling in UP on March 7. It became inevitable.
Crude oil prices in India stood at $83 a barrel on November 4, when the Center cut excise duty on diesel by Rs 10 and petrol by Rs 5 to provide relief ahead of elections in five states. Pump prices have remained unchanged since then under an unofficial government decree.
political expediency to keep fuel prices Will end with voting in check. With the dollar strengthening at Rs 75.49, the gap between the cost and retail prices of petrol and diesel is large enough to allow the freeze to continue without hurting the bottom line of retailers.
Even though Russia has said it will not reduce energy flows to Europe and elsewhere, US sanctions and the removal of Moscow from SWIFT, the global inter-bank messaging system for transactions, are creating barriers to shipping and insurance.
This is forcing many consumers to look to West Asia for alternative supplies. This is where the crisis could occur as the OPEC+ group, including Russia, but dominated by West Asian producers, does not have much spare capacity.
At Wednesday’s ministerial meeting, the group decided to increase monthly production by 400,000 barrels/day as planned.
The group said after its meeting that the rise in prices was not due to any change in market fundamentals but due to “geopolitical situation”.
No wonder US President Joe Biden’s announcement to release 30 million barrels failed to calm the oil market.