Crude Oil Market: Asia’s oil import increased in June, but tension did not end, petrol and diesel may be affected…

Business Desk – Crude Oil Market: The impact of tension between Iran and Western countries still remains on the global Crude Oil Market. In June, seaborne crude oil import from Asian countries has increased compared to May, but it is still far below the normal level.

Experts believe that in the coming months, crude oil prices, petrol-diesel prices and global supply will largely depend on the situation in the Strait of Hormuz and China’s purchases.

Asia’s crude oil imports increased in June

According to commodity analytics firm Kpler, Asia’s seaborne crude oil imports in June are estimated at 20.7 million barrels per day. In May it was 2.03 crore barrels per day, whereas in April it had come down to 1.87 crore barrels per day. The April figure was the lowest level since November 2015.

Although a slight increase in imports has been recorded in May and June, it is still much lower than the level which was before the attacks on Iran. In the three months before the conflict began, Asia’s average crude oil imports were 26.7 million barrels per day.

Strait of Hormuz still the biggest concern

According to experts, the Strait of Hormuz still remains the biggest risk for the global oil market. During the conflict between Iran and America, the movement of ships through this sea route was affected. About 20 percent of the world’s crude oil and refined petroleum products are supplied through this route.

Although there has been a ceasefire between the two countries, the movement of ships has not yet become completely normal. After the incidents of attacks on some ships from Iran, shipping and insurance companies are still adopting a cautious attitude.

Petrol and diesel prices still affected

Fluctuations in crude oil prices have a direct impact on the prices of petrol and diesel. During the increased tension between Iran and America, crude oil became expensive in the international market, due to which the cost of fuel increased in many countries.

Although Brent crude prices have now almost returned to pre-conflict levels, refined products like petrol and diesel still remain expensive in Asian markets. The main reason for this is that during the conflict, refineries had purchased crude oil at high prices, the effect of which is still visible on fuel prices.

What to keep an eye on in the coming months?

Analysts say that the direction of the global oil market in the coming time will depend on two major factors. First, how normal is the oil supply from the Strait of Hormuz, and second, at what speed China increases its purchases of crude oil.

If geopolitical tension increases again or supply is disrupted, then crude oil prices may rise again in the international market, which may also impact the prices of petrol and diesel in many countries including India.