Meanwhile, Brent crude reached $ 104.42 per barrel and American WTI crude reached $ 96.59 per barrel. Both the benchmarks bounced back after the initial decline. However, despite crude oil becoming expensive in the international market, retail prices of petrol and diesel in India remained stable in major cities.
In Delhi, petrol is being sold at Rs 102.12 and diesel at Rs 95.20 per litre. Whereas in Mumbai, petrol is Rs 111.21 and diesel is Rs 97.83 per litre.
First crude oil fell, then prices recovered
Crude oil prices had fallen in early trading on Wednesday. Investors were keeping an eye on the results of the US midterm elections and the prospects for peace talks in the Middle East.
According to Reuters, at around 10:40 am Indian time, Brent crude was trading 0.8% higher at $ 104.42 per barrel and WTI was trading 0.5% higher at $ 96.59 per barrel. Earlier, Brent had slipped to $ 103.21 and WTI to $ 95.42 per barrel.
Supply concerns due to US-Iran tension
The main reason for fluctuations in crude oil prices is the tension between America and Iran. The US took limited military action targeting air defense missiles on Iran’s Qeshm Island. American officials called it a defensive action.
At the same time, US President Donald Trump said that at present there is no immediate plan for a new attack on Iran. On the other hand, talks between Iran and America to end the war have not yet reached any agreement. Qatar is mediating to reduce tension between the two countries.
The market is also concerned about the Strait of Hormuz. It is one of the most important oil transportation routes in the world. If the supply is affected here, the prices of crude oil may increase further in the international market.
America’s oil stock decreased by 52.7 lakh barrels
Prices have also been supported by the decline in crude oil reserves in America. According to American Petroleum Institute (API) data, America’s crude oil stock decreased by 52.7 lakh barrels in the week ending October 30. Whereas analysts in Reuters survey had estimated an increase of about 8.80 lakh barrels during this period. That means the actual decline was much more than expected. However, during the same period, America’s gasoline stock increased by 1.43 million barrels, while distillate stock decreased by 1.19 million barrels. Official stock data from the US Department of Energy was awaited.
Petrol crosses Rs 114 in Bhopal, know the rates of 12 cities
Amid fluctuations in crude oil prices in the international market, there was no major change in the prices of petrol and diesel in major cities of the country on November 4. In Bhopal, the capital of Madhya Pradesh, petrol was recorded at Rs 114.36 and diesel at Rs 99.48 per liter.
Whereas in Delhi, petrol is priced at Rs 102.12 and diesel at Rs 95.20, in Mumbai petrol is priced at Rs 111.21 and diesel at Rs 97.83 per litre. In Kolkata, petrol is being sold at Rs 113.51 and diesel at Rs 99.82, while in Chennai petrol is being sold at Rs 107.76 and diesel at Rs 99.55 per litre. In Bengaluru, petrol is priced at Rs 111.68 and diesel at Rs 99.56, in Hyderabad petrol is priced at Rs 116.15 and diesel at Rs 104.23 per litre. In Jaipur petrol is Rs 113.19 and diesel Rs 98.25, while in Lucknow petrol is Rs 101.89 and diesel Rs 95.36 per litre.
Apart from this, in Patna petrol was recorded at Rs 113.37 and diesel at Rs 99.36, in Ahmedabad petrol was recorded at Rs 102.15 and diesel at Rs 98.27 and in Pune petrol was recorded at Rs 111.90 and diesel at Rs 98.55 per liter.
Why will the rise in crude oil affect India?
India buys a major part of its needs from abroad. In such a situation, the country’s import bill may increase due to crude oil becoming expensive in the international market. This may also affect the position of the rupee against the dollar and inflation. Crude oil is not only used in making petrol and diesel, but many petrochemical products are also prepared from it. Therefore, the increase in prices may also affect the cost of transportation, freight and industries.
Will the prices of petrol and diesel increase?
The rise in crude oil prices does not mean that the prices of petrol and diesel will increase immediately. The retail prices of petrol and diesel in India are decided by oil marketing companies based on market conditions. Factors like international crude oil price, position of the rupee against the dollar, refining costs and taxes affect domestic prices. Therefore, the movement of crude oil will be important for India in the coming days.