There will be an earthquake in the prices of petrol and diesel! Saudi Arabia increased crude oil prices overnight

A big news is coming amid the ongoing tension in the Gulf countries and the war for dominance in the oil market. From America to Iran, everyone is making their move in this ‘black gold’ game. Meanwhile, Saudi Arabia has given a big blow to Asian countries by taking crude oil prices to record levels. Due to the ongoing blockage in the Strait of Hormuz and levy of duty by Iran, Saudi has increased the additional premium of oil to $ 19.50 per barrel.

‘Arab Light’ becomes expensive for Asian buyers

According to a Bloomberg report, the world’s leading oil company Saudi Aramco has drastically increased the prices of its ‘Arab Light’ crude oil for the May sale. For Asian refiners, its price will now be $ 19.50 per barrel more than the regional standard. Although this increase is at a record level, market experts feared that this premium could go up to $40, compared to which it is slightly lower. The ongoing conflict between Iran and Israel-America has completely shaken the supplies from the Persian Gulf.

Outcry in fuel prices across the world

This geopolitical turmoil has created instability in the global oil market. According to the report, a jump of more than 50% has been seen in the prices of Brent crude. This has had a direct impact on fuel prices not only in America and Europe, but also in Asia. Iran’s sanctions have disrupted the supply chain through the Strait of Hormuz, through which about a fifth of the world’s oil and LNG passes.

OPEC+’s big decision: What relief will there be?

OPEC+ countries met to provide relief amid oil shortage and rising prices. According to Reuters, on Sunday the group agreed to increase oil production for the second consecutive month. The group has announced that they will be producing an additional 206,000 barrels per day from May. However, he has also issued a warning. He says that repairing the damage caused to energy facilities during the war is very expensive and will take a long time.

Question on safety of sea routes

The OPEC+ group has placed special emphasis on the security of international sea routes. At present it is not clear whether this slight increase in production will be able to compensate for the reduced oil exports from Gulf countries or not. Unless the supply from the Strait of Hormuz returns to normal, there is little hope of softening of oil prices in the global market. For Asian buyers, including India, this situation may pose a new challenge of inflation in the coming days.