New Delhi. There has once again been a huge rise in the prices of crude oil in the international market. For the first time since May, the price of Brent crude has crossed the mark of $ 110 per barrel, while American crude has also registered a strong increase of about 4 percent. Fading hopes of normalization of energy supply globally and increasing geopolitical tensions between different countries have increased the concerns of energy markets all over the world.
Supply disruptions and geopolitical tensions
There are many major reasons responsible for this rise in crude oil prices. Global oil supplies are at risk due to attacks by Iran-backed Houthi rebels targeting Saudi Arabia’s oil facilities and continued attacks on energy plants and refineries during the Russia-Ukraine war. Following the recent attack on Russia’s major Ryazan oil refinery, its operations had to be halted, further deepening the uncertainty over Russian diesel supplies. Additionally, ongoing tensions in the Black Sea region also continue to put pressure on global fuel supplies.
Potential impact on India and domestic situation
If the prices of crude oil remain high in the international market for a long time, then it is natural that it will impact importing countries like India. This will increase the costs of domestic oil marketing companies (OMCs), which may put pressure on retail prices of petrol and diesel.
However, experts believe that fuel prices in India do not depend only on the international prices of crude oil. In this, the exchange rate between Rupee and US dollar, government taxes, excise duties and other business decisions of oil companies also play an important role. This is the reason that despite the rise in the international market, it is not necessary for there to be a huge increase in prices in India immediately.
