Crude Oil on Fire: ‘Great explosion’ in oil market due to war, price crosses $114; What will be the impact on India?

New Delhi. The fierce war that broke out between America, Israel and Iran in the Middle East has shaken the economy of the entire world. On the tenth day of the war, there was a huge explosion in the global energy market. On Monday (March 9), crude oil prices broke the record of the last three and a half years. $114 per barrel Also crossed. Increasing tension in the Strait of Hormuz and news of supply stoppage have created fear of inflation in markets around the world.

Record rise of 26% in crude oil: prices sky high

As soon as trading started on Monday morning, the prices of ‘Black Gold’ i.e. crude oil went on fire in the international market. global benchmark Brent Crude With a huge surge of around 24-26% $114.63 per barrel crossed the level of. Whereas, American benchmark wti crude Also seen trading near $107. Experts believe that if the war prolongs, oil prices may even go up to $150 to $200 per barrel.

Threat to the Strait of Hormuz: 20% of the world’s oil at stake

The biggest reason for this devastation is the threat looming on the supply chain. Iran has threatened that it Strait of Hormuz It will completely shut down the Gulf, through which about 20% of the world’s oil passes. Other than this:

• Supply cut: Iraq, Kuwait and UAE have indicated to reduce production.

• Impact of attacks: Iran’s oil depots have been targeted in US-Israeli retaliatory attacks.

• Shipping Crisis: Exports from Gulf countries are on the verge of stopping, due to which the concern of Asian countries (China, Japan, India) has increased.

Donald Trump’s statement: ‘A small price to pay for peace’

us President donald trump Has given frank opinion on rising oil prices. He wrote on social media that this rise in oil prices is temporary. Trump said, “This is a very small price to pay to eliminate the Iranian nuclear threat. As this mission is accomplished, prices will come down rapidly.” However, petrol prices in America have already started touching the level of $4 per gallon, due to which there is a lot of anger among the general public there.

Will petrol and diesel become expensive in India also?

Amidst the worldwide outcry, there is relief news for Indian consumers. According to government sources and oil companies, despite this huge surge in international crude oil prices The prices of petrol and diesel will not increase in India at present.

• Strong Reserves: India has already significantly strengthened its Strategic Petroleum Reserve (SPR) and energy stocks.

• Concession from Russia: Recently America has given special exemption to India to buy oil from Russia, which is helping India to meet its needs.

• Government stance: At present, the government is not in favor of putting additional burden on the pockets of the common man, so that domestic inflation can be kept under control.