InvestorQ : Why is crude still rising and how does it impact Indian oil prices?
Sam Eswaran made post

Why is crude still rising and how does it impact Indian oil prices?

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Moii Chavate answered.
3 months ago
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Let us first look at the why crude is rising. On Tuesday, Brent crude prices did correct but still stays close to the $78/bbl mark. The sharp rise in prices is on the back of OPEC expressing its inability to boost supply in short notice. In addition, the hurricanes have impacted US output in the Gulf of Mexico and that is also constricting supply in the global oil market. This has resulted in a sharp drawdown of crude oil inventories leading to a spike up in oil prices.

A rally in crude oil prices, undoubtedly, comes with its own set of challenges as India relies on imports of crude for nearly 80% of its daily needs. This has once again pushed up the prices of domestic petrol and diesel. On Tuesday, petrol was up 20 paise and diesel was up by 25 paisa per litre. In subsidized Delhi, petrol is sold at Rs.101.39/litre while diesel retails at Rs.89.57/litre. The Indian crude basket is at $76.89/bbl and petrol could get dearer.

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