InvestorQ : Why has international oil prices started rising once again? Could we see hikes in petrol and diesel prices?
Archita Jajjoo made post

Why has international oil prices started rising once again? Could we see hikes in petrol and diesel prices?

Answer
user profile image
Rashi Mehra answered.
6 months ago


For the second day in succession, crude oil prices jumped up. This was largely helped along the way by the US Fed rate cut on Tuesday. Earlier, OPEC had announced that it would go ahead with an additional 1 million bpd of supply cuts even if Russia refused to participate. It may be recollected that, over the last 3 years, Russia and OPEC have been coordinating supply cuts so as to keep prices above a profitable threshold. Over the last couple of months, the price of Brent Crude had fallen from $68/bbl to $51/bbl after the Chinese pandemic threatened to slow growth. China accounts for 13% of world oil demand; and that had fallen by 20% in last few months. Since the Indian oil marketers had only recently cut oil prices by a small margin, there is unlikely to be any petrol or diesel hike unless oil again gets up beyond $60/bbl.