New Delhi: Crude oil prices have eased in the international market after surging to nearly $100 per barrel for Brent crude a few days ago. However, this decline has not led to any major change in retail fuel prices in India. On Saturday, July 25, government-owned oil marketing companies (OMCs) kept petrol and diesel prices unchanged across most cities.
Fuel prices in India are not revised solely based on daily movements in global crude oil rates. OMCs periodically review prices by factoring in international market trends, taxes, exchange rates, and other operational costs. As a result, petrol and diesel prices often remain stable even when crude oil prices fluctuate significantly.
Why is there pressure on crude oil prices?
Increasing tension in West Asia is affecting the oil market. There is concern about oil supply due to increasing military conflict between America and Iran. If this conflict continues for a long time, the uncertainty in the market may increase further. Amidst this tension, Iran-backed Houthi rebels have targeted oil tankers in the Red Sea, which has affected maritime trade. At the same time, concerns about security in the Strait of Hormuz, the world’s most important oil route, have also increased.
What is going on between America and Iran?
According to reports, America has launched missile attacks on some Iranian targets. After this, US President Donald Trump warned Iran of strict action. At the same time, Iran has clearly said that it will not come under any pressure. Iran’s Foreign Minister Abbas Araghchi said that he is in touch with China and Russia and will not compromise with the interests of the country. On the other hand, Oman has started efforts to reduce tension between the two countries and normalise the movement of ships through Hormuz.
Is there a fall in Brent crude?
This week, Brent crude reached near $100 per barrel. But on Friday it fell by about 4% and closed at 97 dollars per barrel. Experts say that if tensions in West Asia increase further or oil supply from Hormuz stops, then there could be a major impact on the global oil market in the coming days.
