Brent crude shoots over $100/bbl again
Russia is 3rd largest producer of crude oil in the world; It’s feared that sanctions against Russia will start to curtail global supplies and stifle growth; Fuel price hike of upto Rs10/litre likely in India after Assembly polls
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New Delhi: Concerns over lower supply amid escalating Russia-Ukraine conflict pushed up global crude oil prices to $102 per barrel on Tuesday. The rise in crude oil prices comes after negotiations failed to resolve the Russian-Ukrainian conflict. The Brent-indexed crude oil prices had risen by five per cent to over $98 per barrel on Monday. For India, the price range is a cause of concern as it may add Rs 8 to Rs 10 in petrol and diesel selling prices, if the OMCs decide to revise the current prices.
The cascading effect of higher fuel cost will trigger a general inflationary trend. "Crude oil prices rallied on Tuesday with ICE Brent oil surging more than 4 per cent, above $102 per barrel. Crude oil prices resume rally on concerns over lower supply amid failed talks between Russia and Ukraine," said Tapan Patel, senior analyst (commodities), HDFC Securities.
Anuj Gupta, V-P (research) at IIFL Securities, forecasts: "Crude oil is trading higher due to escalating geopolitical tension. We are expecting that crude oil may test $105 to $108 levels soon."
Russia is the third largest producer of crude oil in the world. It is feared that sanctions against Russia will start to curtail global supplies and stifle growth.
On last Friday, a rise in the US oil inventories along with assurance of energy supply from Russia had doused international crude oil prices. Consequently, the price on last Friday came down to $95 per barrel after the Russia-Ukraine war pushed Brent Crude Oil prices to $105 per barrel.
