Explainer: Crude oil fell to $56 in two months, will petrol become cheaper in India now too?

Two months ago, crude oil prices were at their peak in the international market. Crude oil from Gulf countries was trading at $126 per barrel. On the other hand, American crude oil prices were also trading at $117 per barrel. At that time tension in the Middle East was at its peak. America and Israel were firing missiles at Iran. On the other hand, Iran was also responding to both the countries with missiles and drones. The Strait of Hormuz was closed. No shipment of crude oil was passing through.

At present, America and Iran are at one table to maintain peace. Hormuz has been opened. The possibility of tension still remains. Even after that, there is a positive sentiment going on in the market. This is the reason why Gulf and American crude oil prices have come down to pre-war levels. The special thing is that the crude oil of Gulf countries has become cheaper by more than 56 dollars per barrel i.e. by about 45 percent from its peak of two months.

Whereas the prices of American crude have seen a decline of more than 40 percent from the peak. In such a situation, the question is when will the government oil companies of the country start giving the benefit of this cheap oil to the common people. Let us also tell you what the price of crude oil has become in the international market in the current situation. Also, at what level are the prices of petrol and diesel in the country?

Oil becomes 45 percent cheaper than peak

If we look at the data, crude oil prices have come down by 45 percent from their 52-week high. First of all, if we talk about Brent crude, the crude oil of Gulf countries, the price had reached a 52-week high of $ 126.41 per barrel on April 30. From then till now it has seen a decline of 45 percent. By the way, on Thursday the crude oil of Gulf countries was seen at $ 70.13 per barrel. This means that the price of crude oil has seen a fall of $ 56.28 per barrel.

On the other hand, if we talk about American crude, it has also seen a decline of more than 40 percent from its 52-week high. If we look at the data, on April 7, the price of American crude was at a 52-week high of $ 117.63 per barrel. Since then it has seen a decline of 42.42 percent. On Thursday, the price of American crude was seen at $67.72 per barrel. Does that mean American? The price of crude oil has come down from 52 weeks high to $ 49.91 per barrel.

Less worry about supply

1. Senior US officials said progress was being made in talks with Iran, although discussions were still in the early stages, reducing fears of any immediate tensions that could disrupt Gulf crude exports.
2. Meanwhile, crude oil shipments through the Strait of Hormuz rose above 10 million barrels per day, reflecting growing market confidence that supplies will continue despite geopolitical risks.
3. Growing confidence that exports from the Gulf will continue without interruption kept prices under pressure. Flows through the Strait of Hormuz have steadily improved in recent weeks, while alternative routes have helped restore exports from major regional producers, reducing fears of prolonged supply disruptions.
4. Also, new data from the US Energy Information Administration (EIA) showed that domestic crude oil production reached a record 13.93 million barrels per day in April, further strengthening expectations of abundant global supply.
5. ANZ said improved prospects for a permanent deal between Washington and Tehran had eased supply concerns, although uncertainty over future control of the Strait of Hormuz was providing some support to crude prices.
6. Despite the recent weakness, traders remain cautious as talks continue. The market is now keeping an eye on further developments in the US-Iran talks, additional signals related to shipping in the Gulf and upcoming US inventory and demand data for clear direction on oil prices.
7. Petrol and diesel price in India
8. There has been no change in the prices of petrol and diesel in India for 38 days. The last increase in the prices of petrol and diesel was seen on May 25. If experts are to be believed, the way crude oil prices are falling, it is estimated that the freeze button will remain pressed on the prices of petrol and diesel. The price of petrol and diesel in Delhi is Rs 102.12 and Rs 95.20 per liter respectively.
9. The price of petrol in Kolkata is Rs 113.51 and the price of diesel is Rs 99.82 per liter. In Mumbai, the prices of petrol and diesel are seen at Rs 111.21 and Rs 97.83 per liter respectively. Whereas in Chennai the price of petrol has come to Rs 107.77 and diesel to Rs 99.55 per liter. However, in the month of May, there was an increase of 7 to 8 percent in fuel prices.

Naira made petrol and diesel cheaper

On the other hand, the country’s second largest private fuel retail company Nayara has reduced the prices of petrol and diesel by Rs 5 and Rs 3 per liter respectively. This cut has been made by any petroleum company of the country for the first time in more than 2 years. In such a situation, hope has arisen among the common people that after the reduction in the prices of crude oil in the international market and the reduction in Naira, the government oil companies of the country will also reduce the prices of petrol and diesel.

Experts believe that government oil companies have suffered huge losses due to not increasing prices at the peak. In such a situation, there will be no reduction in fuel prices until this loss is compensated. However, in the month of March, Naira had increased the price of petrol by Rs 5 and the price of diesel by Rs 3 per liter.