Now even US West Texas Intermediate (WTI) crude oil has breached the $70 a barrel mark as international oil prices continue to rally on mainly on the back of production cuts.
Now even US West Texas Intermediate (WTI) crude oil has breached the $70 a barrel mark as international oil prices continue to rally on mainly on the back of production cuts. US oil rose above $70 a barrel for the first time since November 2014 as traders braced for a re-imposition of U.S. sanctions on the Middle East crude producer Iran, Bloomberg report. The benchmark Brent rose 91 cents to $75.78 a barrel.
Even as international crude oil prices continued their rally, the petrol and diesel price in India were kept unchanged for the 14th day by the oil companies. According to Indian Oil’s website, petrol price in Delhi was Rs 74.63 a litre; Kolkata Rs 77.32; Mumbai Rs 82.48; Chennai Rs 77.43. Diesel price was Rs 65.93; Kolkata Rs 68.63; Mumbai Rs 70.20; Chennai Rs 69.56.
While the Narendra Modi government ruled out any cut in excise duty levied on fuel price, oil companies seem to have put a freeze on the prices. Oil PSUs have not changed petrol, diesel prices since April 24. While the oil companies refused to comment on the pricing, it was earlier reported that government had asked them to absorb losses up to Rs 1 a litre.
In India, fuel prices were deregulated in 2010 and oil companies since then have been revising prices. Oil companies in June last year dumped the 15-year old practice of revising rates on 1st and 16th of every month and instead adopted a dynamic daily price revision to instantly reflect changes in cost.
The high international oil prices even prompted US President Donald Trump to slam the OPEC for ‘artificially’ high prices. A Reuters report said that Saudi Arabia, a key OPEC member, would be happy to see oil hit $80 or $100 a barrel.