New Delhi: Fuel prices are expected to ease soon as the OPEC+ group on Sunday agreed to add more barrels to the market, reducing the risk of a supply squeeze and a rise in inflationary oil prices.
The group, which also includes Russia, decided to increase production by 400,000 barrels per day (bpd) from August to December to restore 2 million bpd of production, or about 44% of India’s daily requirement. It also agreed on a higher production quota for the UAE, Iraq and Kuwait – all major suppliers to India.
Differences arose due to UAE’s demand for higher quota OPEC The linchpin threatened to squeeze supplies amid improving demand in Saudi Arabia and India, China, the US and Europe.
OPEC+ deal comes within days of India’s new oil minister Hardeep Singh Puri in touch with his UAE and Saudi counterparts Ahmed Al Jabere and Abdulaziz bin Salman, respectively. Taking advantage of New Delhi’s close ties with Abu Dhabi and Riyadh, Puri offered to work with them to “pacify the market” and expressed concern over the slowdown impact of higher oil prices on improving demand. Had it.
More barrels would reduce pump prices and inflation, both of which have risen to record levels and drew criticism from the opposition. So politically speaking, the deal would help the government blunt some of the criticism. Parliament, which begins its monsoon season on Monday, when fuel prices start falling. Lower oil prices will also give the government financial breathing space.
India’s crude oil costs have already slipped from a high of $77-78 to $73 a barrel as benchmark Brent reached its 30-month high on a potential Saudi-UAE deal and reports of a resurgence in Covid-19 cases in some regions level is falling. .
Petrol and diesel prices are determined according to their international quotes and the 15-day rolling average of the dollar exchange rate. The price of crude oil is an intermediary factor. This is expected to reflect at the consumer level in a few days and consumers can expect pump prices to drop once the additional barrels flow in.
Petrol prices are running above Rs 100 per liter and diesel above Rs 90 in most states as higher central and state taxes compound the impact of rising crude. Rupee had also weakened against the recent noteIncreasing pressure on pump prices.
The OPEC+ group last year cut output by a record 10 million bpd, or about 10% of daily global supply, amid a pandemic-induced slowdown in demand and falling prices. It has gradually restored some supply leaving it with a shortfall of about 5.8 million bpd.
The group, which also includes Russia, decided to increase production by 400,000 barrels per day (bpd) from August to December to restore 2 million bpd of production, or about 44% of India’s daily requirement. It also agreed on a higher production quota for the UAE, Iraq and Kuwait – all major suppliers to India.
Differences arose due to UAE’s demand for higher quota OPEC The linchpin threatened to squeeze supplies amid improving demand in Saudi Arabia and India, China, the US and Europe.
OPEC+ deal comes within days of India’s new oil minister Hardeep Singh Puri in touch with his UAE and Saudi counterparts Ahmed Al Jabere and Abdulaziz bin Salman, respectively. Taking advantage of New Delhi’s close ties with Abu Dhabi and Riyadh, Puri offered to work with them to “pacify the market” and expressed concern over the slowdown impact of higher oil prices on improving demand. Had it.
More barrels would reduce pump prices and inflation, both of which have risen to record levels and drew criticism from the opposition. So politically speaking, the deal would help the government blunt some of the criticism. Parliament, which begins its monsoon season on Monday, when fuel prices start falling. Lower oil prices will also give the government financial breathing space.
India’s crude oil costs have already slipped from a high of $77-78 to $73 a barrel as benchmark Brent reached its 30-month high on a potential Saudi-UAE deal and reports of a resurgence in Covid-19 cases in some regions level is falling. .
Petrol and diesel prices are determined according to their international quotes and the 15-day rolling average of the dollar exchange rate. The price of crude oil is an intermediary factor. This is expected to reflect at the consumer level in a few days and consumers can expect pump prices to drop once the additional barrels flow in.
Petrol prices are running above Rs 100 per liter and diesel above Rs 90 in most states as higher central and state taxes compound the impact of rising crude. Rupee had also weakened against the recent noteIncreasing pressure on pump prices.
The OPEC+ group last year cut output by a record 10 million bpd, or about 10% of daily global supply, amid a pandemic-induced slowdown in demand and falling prices. It has gradually restored some supply leaving it with a shortfall of about 5.8 million bpd.
.