New Delhi: Amid the ongoing conflict in the Middle East, the supply of crude oil is gradually approaching pre-war levels. Saudi Arabia has started increasing the supply of crude oil again through its pipeline bypassing the Strait of Hormuz. Despite this, crude oil prices remain high in the international market. Brent crude is trading above 100 dollars per barrel.
According to reports, international benchmark Brent crude remains around 103 dollars per barrel. At the same time, the American benchmark WTI has slipped towards 89 dollars per barrel after falling by about 3.5 percent in the last trading session.
Have the prices of petrol and diesel changed in India today?
Government oil marketing companies in India have released the prices of petrol and diesel for September 30. Even today there has been no change in the price of fuel in major cities of the country.
In Delhi, petrol is being sold at Rs 102.12 per litre and diesel at Rs 95.20 per litre. That is, despite the fluctuations in the prices of crude oil in the international market, at present the rates of petrol and diesel are stable at the domestic level.
In which countries has the price of diesel increased more than double?
The effect of the rise in crude oil prices is visible on the prices of petrol and diesel in many countries of the world. According to available data, diesel prices in Lebanon and Nigeria have increased by about 104 percent since the start of the Iran war.
At the same time, in Indonesia, Panama, Bolivia and Guatemala, diesel prices have increased by about 81 to 87 percent. Talking about petrol, its price has increased by about 72 percent in Malaysia, 65.9 percent in Nigeria, 63.5 percent in Philippines, 58.9 percent in Myanmar and 51.9 percent in Pakistan.
Is oil supply from the Middle East returning to pre-war levels?
According to JPMorgan’s Natasha Kanaeva’s team, crude oil exports from the Middle East have increased to about 17.5 million barrels per day. This is said to be about 98 percent of the level before the conflict started.
Saudi Arabia has increased oil supply through the East-West Pipeline by at least 3.5 million barrels per day, according to people familiar with the matter. This is approximately half the total capacity of the pipeline.
However, the situation of refined petroleum products has not yet become completely normal. The global supply of products like diesel and petrol is said to be around 58 percent of the pre-war level.
Will the US release more oil from its emergency reserve?
To control fuel prices, the US is considering releasing additional crude oil from its emergency oil reserve. According to reports, America can bring about 40 million barrels of oil into the market.
Since the beginning of the conflict in the Middle East, America’s share in the release of oil from the global strategic reserve has been about 172 million barrels. The proposed additional release is being considered as the next part of this process.
After all, why is the price of crude oil continuously rising?
Crude oil prices remain affected by the tension between America and Iran. Apart from this, earlier blockages in Saudi Arabia’s bypass route and discussions about a possible ban on diesel exports from America have also increased the market’s concern.
Amid the conflict that has been going on in the Middle East for more than seven months, the price of Brent crude has increased by almost 70 percent this year. However, there is hope of some relief in the market due to signs of gradual improvement in supply.
Will OPEC change oil production next month?
Key OPEC members are expected to agree to maintain crude oil production targets at current levels for next month at a meeting this weekend. The group led by Saudi Arabia and Russia is likely to approve the current plan to leave the production target for November unchanged, according to the two representatives.
If there is no major change in the production target, the impact of supply and the situation in the Middle East may remain significant on crude oil prices in the coming days.
