Business/Alive News: Global crude oil prices recorded their biggest weekly decline since 2020, falling more than 16% last week. Prices have dropped to around $97-98 per barrel after reaching a six-month high in late October. The decline has raised hopes of cheaper petrol and diesel in India, although an immediate price cut is not certain.
Market analysts say expectations of a diplomatic solution to the Middle East conflict have contributed to the fall in oil prices. However, tensions in the region continue, with reports of attacks on oil tankers and military targets.
Key Reports to Influence Oil Prices
Three major reports are expected this week. The US Energy Information Administration (EIA) will release its report on Tuesday, followed by OPEC’s monthly report on Wednesday. The International Energy Agency (IEA) will publish its report on Friday.
How Will Cheaper Crude Affect India?
India imports around 85% of its crude oil requirements. Therefore, changes in international oil prices directly affect the country’s import bill and economy.
When crude becomes expensive, oil companies face higher costs, which can eventually push up petrol and diesel prices. Higher diesel prices also increase transportation costs, affecting the prices of essential goods.
On the other hand, cheaper crude reduces import expenses and can help control inflation.
Will Petrol and Diesel Become Cheaper?
A reduction in domestic fuel prices will depend on crude oil trends and the financial position of oil marketing companies. If Brent crude remains around $95-98 per barrel for an extended period, improved refining margins could create room for a price reduction.
Market estimates suggest petrol and diesel could become cheaper by ₹2-4 per litre, but no immediate price cut has been announced.
