Crude Oil Price / Will crude oil pick up pace again, will the price cross $90?

Zoom News : May 09, 2024, 08:11 AM

Crude Oil Price: Crude oil prices have started showing signs of picking up again. In the international market, oil from Gulf countries has reached close to $84 per barrel. Experts speculate that soon the oil Brent of Gulf countries may cross $90 per barrel. The main reasons for this are the news of decline in US inventories, indications of interest rate cut from the Fed, increasing demand from countries like China and India and most importantly, voluntary crude oil production cut by OPEC even after June. There are signs of continuation. Also, the tension in the Middle East may not be boiling right now, but the matter has not been resolved yet. This means that a trigger could worsen the situation in the Middle East again. The effect of which will be seen in the price of crude oil.

It is clear that if this happens then there may be an increase in the prices of petrol and diesel in India. The results of Lok Sabha elections in the country will be revealed on June 4. There will be a meeting of RBI's MPC from 5th to 7th June and on 7th June, the RBI Governor will present the estimated inflation figures along with the announcement of the policy rate. After which the price of petrol and diesel can be increased by the government oil companies of the country to meet their losses. The last time the country's petroleum companies had cut the prices of petrol and diesel was in mid-March. Which was Rs 2 per litre. Let us also tell you what the prices of petrol and diesel are at present. Also, how much increase is being seen in the price of crude oil.

Increase in price of crude oil

An increase in the prices of crude oil is being seen in the international market in early trading on Thursday. The main reason for which has indicated a decrease in American crude oil reserves. On the other hand, there are indications of a cut in interest rates by the US Federal Reserve by the end of the year. However, some people also believe that the Fed should cut interest rates in the month of September. Well, the effect of all this is visible in the prices of Gulf and American crude oil. Brent crude, the crude oil of Gulf countries, is trading at $ 83.81 per barrel, up by 23 cents. US West Texas Intermediate crude, on the other hand, rose 29 cents to $79.28 a barrel. If experts are to be believed, further increase may be seen in the coming days.

Why are crude oil prices increasing?

According to the American EIA, crude oil reserves decreased by 1.4 million barrels last week to 459.5 million barrels, which is an indication that there may be some problems in supply in the coming days. On the other hand, after the US jobs data was weaker than expected, expectations have increased that the US central bank will cut interest rates by the end of the year. Due to which there was an increase in the price of crude oil. Expenditures on crude oil may increase due to low interest rates. On the other hand, talks about Gaza ceasefire have remained only in talk. Although no action has been taken yet between Iran and Israel, the sword of tension is still stuck. Due to which there is a possibility of tension increasing again in the coming days.

Petrol and diesel prices frozen

There has been no change in the prices of petrol and diesel in the four metros of the country. On May 09, the same prices will be applicable which were there on March 15 after the deduction of two rupees. Before that, the government had announced a reduction of Rs 2 in the price of petrol and diesel in the country. The special thing is that this cut was made a few days after the statement of the Petroleum Minister, in which he had said that the international environment is not good. Logistics and insurance costs have increased due to attacks in the Red Sea. The special thing is that the petroleum companies of the country are still in loss.

The special thing is that the biggest fear that the petroleum companies were facing after this cut has come to the fore. That fear is the loss of petroleum companies. Which has come to light in the fourth quarter. IOCL has suffered a loss of 45 percent in operating profit. Other companies were also expected to suffer loss in profit in the fourth quarter. In the first three quarters of the last financial year, companies saw a joint profit of Rs 69 thousand crores. After which, after the end of the financial year, it was expected that this figure could reach Rs 1 lakh crore.

Petrol and diesel prices in major cities of the country