Oil nears $90 for first time in 2023, reduces chances of a petrol, diesel price change in India
Oil prices hit a 10-month high of nearly USD 90 per barrel as Saudi Arabia and Russia extended their voluntary production and export cuts until the end of the year. For a nation that is more than 85 per cent dependent on imports for its oil needs, the surge in prices means India will have to shell out more and the prospect of returning to market-driven petrol and diesel prices in the near future diminished further.
Brent crude prices surged around 6.5 per cent over the past week after Saudi Arabia, which leads the expanded OPEC+ cartel with Russia, decided to keep its one million barrels a day reduction in supplies to the global market until the end of December.
Russia has added its own voluntary export cuts in recent months.
The move has led to Brent rising above USD 90 a barrel for the first time this year on Tuesday.
On Wednesday, it was trading at USD 89.67 per barrel. The basket of crude oil that India imports has averaged USD 89.81 per barrel this month, up from USD 86.43 in August, according to oil ministry data.
The Indian basket was hovering in the range of USD 73-75 per barrel in May and June, rekindling hopes for a return to market-based pricing and a reduction in petrol and diesel prices.
But rates spurt to USD 80.37 per barrel in July and now to near USD 90.
«Public sector oil companies had been recouping losses they incurred for holding rates when crude oil prices shot through the roof last year.
