Oil prices News

Iran had also warned of blocking the Strait of Hormuz through which 20 per cent of the world’s oil is shipped out from countries such as Saudi Arabia and UAE 

Crude oil prices extended gains for a third straight week amid rising geopolitical tensions and a sharper-than-expected drawdown in US inventories. T

India imports around 85 per cent of its crude oil requirement, and a surge in oil prices can lead to an increase in its oil import bill and push up the rate of inflation, which can hurt economic growth.

Foreign institutional investors (FIIs) remained net sellers last week, offloading shares worth Rs 1,246 crore.

The energy ministry confirmed temporary shutdowns at the Leviathan and Karish platforms, which together account for around 1.8 billion cubic feet per day (Bcf/d), or 50 million cubic meters per day (cm/d). 

Middle-East Conflict: Crude prices are weak as fundamental factors do not support higher oil prices and there has not been any major attacks on the oilfields in Iran.  

US President Joe Biden's recent remarks on potential Israeli strikes on Iranian oil facilities have sent oil prices soaring by 5%.

The ongoing tensions highlight the importance of Iran's oil industry for maintaining stability in energy markets, especially during periods of political unrest or possible supply shortages.  

Russia has now emerged as the largest supplier of crude oil to India replacing Iraq and Saudi Arabia which occupied the top slot earlier. 

The current dip in international crude oil prices is a key factor influencing the decision to cut fuel prices in India.

India's fuel demand rose 6.1% y-o-y in July, as per PPAC. Cooking gas or LPG sales increased by 1.7%. Gasoline or petrol sales were 6.8% higher from last year.

The WPI inflation has remained in double digit for the 14th consecutive month since April last year and has been in the upper trajectory for three straight months.

Brent futures rose $1.43, or 1.3%, to $112.31 per barrel by 1:24 p.m. WTI was on track to gain about 6% and Brent set to rise nearly 4% this week. Demand concerns on signs of a weakening global economy capped the price rise.

Today, Prime Minister Narendra Modi appealed to many states of the country to reduce VAT to reduce oil prices. However, these are the state governments where there are often protests against expensive oil prices.

Indonesia has banned the export of palm oil from April 28. The decision has been taken to control skyrocketing domestic prices and ensure availability of food products at home. Indonesia is the world’s biggest exporter of palm oil.

The halt has led to a hike in CNG and piped cooking gas prices to record levels. Current supplies have been maintained at March 2021 demand level, report said.

A notification from the Ministry of Food, Consumer Affairs and Public Distribution's Department of Food and Public Distribution published on Wednesday, extended the date from March 31 to December 31.

A strong dollar makes crude more expensive for other currency holders and tends to weigh on risk appetite. Earlier this month, Brent hit $139 a barrel, the highest since 2008. Oil prices drew support from threats to supply as Yemen`s Iran-aligned Houthi group attacked Saudi energy and water desalination facilities.

EU governments will consider whether to impose an oil embargo on Russia. Brent crude futures were up $4.44, or 4.1%, at $112.37 a barrel by 1321 GMT, adding to a 1.2% rise on Friday.

The temporary fee is designed to reduce the burden of high gas prices. The fee is temporary but lasts for at least the next 60 days. The company said that drivers who switch to EVs can enjoy higher earnings potential due to Uber`s Green Future Programme.