Business Desk – Crude Oil Price Today: Crude oil prices are again rising in the international market on Tuesday. Pressure on Crude Oil Price has increased due to increasing tension between America and Iran and not taking the agreement forward. The 60-day interim agreement between the US and Iran formally expired.
However, US President Donald Trump had already announced the cancellation of the agreement. Now there seems to be no hope of talks between the two countries regarding a new agreement. The rising prices of crude oil can also affect India and this has weakened the hope of petrol and diesel becoming cheaper.
What is the price of crude oil today?
Crude oil prices remain high due to tensions in the Middle East. On Tuesday, the price of Brent Crude reached $ 91.133 per barrel. Whereas WTI Crude is trading at $ 84.934 per barrel. There have been continuous fluctuations in oil prices for some time now. If the current momentum continues, the price of crude oil may again move towards the important level of $ 100 per barrel.
Prolonged rise in crude oil prices has a direct impact on countries that import a large part of their oil needs. India also imports large quantities of crude oil for its needs. Therefore, a sharp increase in international prices may increase pressure on the country's fuel market.
Why is there less hope for the US-Iran agreement to move forward?
US President Donald Trump has already made it clear that America is not taking forward the existing agreement with Iran. On the other hand, Iran has also refused to participate in the proposed talks with America. Iran demands that America first accept all its conditions.
At the same time, America wants to move forward on the strategy of increasing economic pressure on Iran to bring it to its terms. In such a situation, there seems to be little possibility of any new agreement between the two countries immediately. Due to the deadlock in talks, there is increasing concern in the market that tensions in West Asia may prolong further.
The world's eyes on the Strait of Hormuz
Amidst the tension between America and Iran, the Strait of Hormuz remains the most important center of this entire matter. This is an important oil route for the world and the possibility of affecting the movement of ships here directly affects the international oil market.
Talks are going on between Tehran and Oman regarding the movement of ships in the waterway. America is not involved in this conversation. The market is now keeping an eye on how normal the movement of oil through the Strait of Hormuz remains.
America is gradually increasing pressure on Iran
American officials have indicated that President Trump does not want to rush into the matter of Iran. America's strategy is said to be to gradually increase economic pressure on Iran and weaken its position.
It has been almost six months since tensions began in the Middle East. During this period, there have been many sharp fluctuations in the prices of crude oil in the international market. Now, due to less possibility of a new agreement, uncertainty is increasing again in the oil market.
There is weak hope of petrol and diesel becoming cheaper in India.
Considering the way the price of crude oil is increasing, the hope of petrol and diesel becoming cheaper in the coming few months in India seems weak at the moment. However, domestic fuel prices do not depend only on international crude oil prices. Many other factors like the position of the rupee against the dollar, taxes and costs of oil companies are also important in this.
If the price of crude oil remains above $ 100 per barrel for a long time, then there may be upward pressure on the prices of petrol and diesel in India. In such a situation, in the coming days, Indian consumers will keep an eye on the US-Iran relations, the Strait of Hormuz and the movement of the international oil market.