Business Desk- Crude Oil Price Today: Brent crude reached near $ 97 per barrel in the international market. Prices fell on expectations of easing tensions between America and Iran. However, there was no change in the prices of petrol and diesel in India.
Crude oil prices in the international market have fallen below $100 per barrel. On Monday, November 9, Brent crude fell 1.04% to $97.30 per barrel. At the same time, the price of American crude WTI was $ 90.29 per barrel. Last week also a big fall was recorded in the prices of crude oil.
Despite the fall in crude oil prices, Indian customers have not got any relief in the prices of petrol and diesel at present. Fuel prices remained stable in major cities of the country on Monday. Petrol in Bhopal is Rs 114.36 and diesel is Rs 99.48 per liter. Whereas in Indore, petrol is being sold at Rs 114.61 and diesel at Rs 99.70 per litre.
Prices fell on hopes of easing tension between America and Iran
The main reason for the fall in crude oil prices is expected to be the reduction in tension between America and Iran. US President Donald Trump said in an interview with CNN that if talks between the two countries progress and a strong agreement is reached, then the likelihood of a new military attack on Iran being needed is very low.
After this statement, the fear of increasing war in West Asia has reduced in the international market. Investors are hopeful that oil supply may return to normal as tensions ease. This has put pressure on crude oil prices.
However, tension in the area has not completely ended. There remains concern about attacks on ships and the security of oil facilities around the Strait of Hormuz. This is the reason why despite the fall in prices, uncertainty remains in the market.
Brent crude fell by 17% last week
Last week, Brent crude prices fell by about 17%. This is reported to be its biggest weekly decline since April 2020. There was pressure on prices in the market due to the progress of talks between America and Iran and expectations of gradual normalization of oil supply from West Asia.
On the other hand, Goldman Sachs has increased its estimates regarding future crude oil prices. The bank has increased its estimate of Brent crude for December 2026 from $ 90 to $ 105 per barrel. At the same time, the estimate of American WTI crude has been increased from $ 81 to $ 94 per barrel.
According to the bank, if oil production in the Gulf region remains affected, the price of Brent crude could reach $ 140 per barrel in 2027. This means that despite the current decline, there remains a risk of further rise in prices.
Petrol and diesel prices in big cities
Despite the fall in crude oil prices, there was no change in the rates of petrol and diesel in major cities of the country on Monday. In Delhi, petrol is Rs 102.12 and diesel is Rs 95.20 per liter. In Mumbai, petrol is being sold at Rs 111.21 and diesel at Rs 97.83 per litre.
The price of petrol in Kolkata is Rs 113.51 and diesel is Rs 99.82 per liter. Petrol in Chennai is Rs 107.76 and diesel is Rs 99.55 per liter. In Bengaluru, petrol is available at Rs 111.68 and diesel at Rs 99.56 per litre.
Petrol in Hyderabad is Rs 116.15 and diesel is Rs 104.23 per liter. At the same time, in Bhopal, the capital of Madhya Pradesh, petrol is priced at Rs 114.36 and diesel at Rs 99.48 per liter. In Indore, petrol is being sold at Rs 114.61 and diesel at Rs 99.70 per litre.
Why did the prices of petrol and diesel not decrease in India even when crude oil became cheaper?
The effect of fall in crude oil prices in the international market is not immediately visible in the Indian market. Apart from crude oil, the value of rupee against dollar, refining cost, transportation expenses and taxes of central and state governments also play a role in determining the retail prices of petrol and diesel in India.
Oil companies review the prices of petrol and diesel in the country daily. However, despite fluctuations in the international market, retail prices do not necessarily change every day. Therefore, it may take time for the benefits of the current fall in crude oil to reach the customers.