International oil prices may climb in India’s retail oil and diesel sales price as oil companies suffer acute margin squeezing, sources indicated. The costs of oil and diesel stayed steady for 12 days, but the worldwide rate is already rising.
Current worldwide petrol and diesel prices are roughly USD 4-6 per barrel higher than August’s average pricing. However, the oil corporations have not influenced any hike in retail pricing to date, sources added. If international prices stay at such a level, petroleum marketing companies (OMCs) must raise oil and diesel retail prices, they stated.
On the previous 17 July and 15 July respectively, fuel and diesel retail prices have climbed. Oil costs Rs 101,19 per litre in Delhi and Rs 88,62 per litre is diesel.
The international average price of crude oil in August decreased by more than USD 3 per barrel compared with the last month. The situation was underlined by the contradictory US and Chinese economic data and movement constraints in Asia fueled by the rapidly spreading version of the Delta. As of July 18, oil marketing companies cut the retail price of diesel petroleum in Delhi by Rs 0.65 per litre, and Rs 1.25 per litre. On 5 September, there was the last downward revision. But since August’s last week, crude oil prices have been steadily increasing with recent developments on the international market.
The outages in crude oil production on Mexico’s offshore platform in North America and disturbances produced by Hurricane Ida on America’s Gulf Coast have led to a significant increase in oil prices. Ida, the biggest storm that hit the United States’ Gulf Coast since the 2005 Katrina and Rita hurricanes might lead to a total loss of up to 30 million barrels of crude supplies in accordance with the IEA.
Moreover, decreased the US crude oil inventories and demand forecasts have contributed to the recent price spike. OPEC maintained an estimated 6.0 million barrels per day growth in world oil demand for 2021 in its monthly oil market report for September. The OPEC is projected to support the demand for crude oil by increasing the immunisation rates and continued economic developments in major economies.
World oil demand is predicted to increase from the third quarter of 2021 by 1,24 million barrels a day.OPEC plans to achieve oil consumption of 100.8 mb/d in 2022, which is above epidemic levels.
In the short run, worldwide petroleum prices may remain firm even as the IEA reports optimism regarding increased immunisation rates and probable improvement in demand., sources said. Sources.