Crude Oil Rates Reached 7 Year High, Will Petrol-Diesel Be Expensive Again?
The effect of the rise in crude oil at the international level can be directly visible in the domestic market. The price of Brent crude has increased continuously for five weeks and has reached the record level of the last seven years.
- Brent crude crosses $87
- Highest price since October 2014
- Petrol can be costlier by Rs 3 to 4
New Delhi: Crude Oil Price: Petrol-diesel rates may increase the government’s tension amidst the decreasing concern about the Omicron variant of Corona. The price of Brent Crude Oil has risen above $87. These prices are the highest in the last 7 years.
- Crude at record level after October 2014
For the fifth consecutive week, the rate of crude oil has seen an increase. This is the record rise in crude oil since October 2014. Due to the rise in crude oil, once again the rates of petrol and diesel in the country may increase. Let us know why petrol-diesel can be expensive in the coming time?
- Reason No. 1: Tension in the Middle East
Yemen’s Houthi opponents had blasted an oil tank in Abu Dhabi a day earlier. Three people died in this attack. He did this with the aim of obstructing oil production. After this incident, the price of crude oil has increased. Due to this the supply of crude is being affected. For the past few weeks, there has been a steady increase in the price of crude.
- Reason No. 2: Record Rise in Crude
The record increase in the price of crude oil is sure to have an impact on the rate of petrol and diesel in the Indian market. Experts say that in this situation, the rate of crude can reach close to $ 90 in the coming days. Due to this, petrol is estimated to be costlier by Rs 3 to 4 and diesel by Rs 2 to 3 in the country.
- Reason No. 3: Demand More Supply Less
The supply is decreasing due to the ongoing tension in the Middle East and the demand for oil has increased as the Corona crisis subsides. That is, the demand for crude is high and the supply is less accordingly. This is also increasing the rate of crude. This will have a direct impact in the domestic market and once again the rates of petrol and diesel may increase.
- Reason number 4: Indian market also booming
The effect of increasing the price of crude in the international market can also be seen on the Indian futures market. The rate of crude oil has seen an increase of more than 12 percent. On the Multi Commodity Exchange, the price of crude oil is around Rs 6290 per barrel. On December 31, the price of crude oil closed at Rs 5610.
- How much did the crude rate increase
Brent crude was at the level of $ 69 per barrel on 1 December 2021. In just six weeks, there has been a jump of about 25 percent in it. Experts believe that there is no possibility of increase in oil production capacity yet. Demand is also increasing due to the clouding of the crisis due to Omicron.
- Crude oil can be delivered here
Morgan Stanley estimates that the price of crude oil can be up to $ 90 per barrel in the near future. The Energy Information Administration (EIA) and Bloomberg had reduced OPEC countries’ oil production capacity to 8 million and 1.2 million barrels per day for 2022. After this report, JP Morgan has predicted a rise in the price of crude oil up to $ 30 per barrel in the coming days.