With the G7 negotiations and demand worries, crude oil prices fluctuated in choppy trade
For more than five weeks, domestic retail fuel prices have been stable. Diesel cost 89.62 cents per litre and gasoline cost 96.72 cents per litre in the capital.
Early trades on Monday saw volatile trading for crude oil prices. Investors were anticipating the conclusion of a meeting of the Group of Seven (G7) nations’ leaders on Russian oil and gas exports that took place in Germany. Prices were impacted by demand worries related to slowing economic growth and the possibility of a worldwide recession.
The Intercontinental Exchange’s August Brent crude contract was trading at $113.17 a barrel at 10:35 a.m., up $0.04 from the previous close. West Texas Intermediate’s August contract was trading at $107.56 per barrel, down 0.06 percent.
Even while G7 leaders were also anticipated to discuss a renewal of the Iran nuclear deal, which may result in additional Iranian oil shipments, the risk of more supply tightness hung over the market as western nations sought methods to reduce Russia’s ability to pay its war in Ukraine.
“However, weighing on crude oil prices are demand concerns as economic activity is slowing while aggressive monetary tightening has fueled debate about a recession. Crude oil may remain in a range as supply risks counter demand worries however with increasing focus on global growth, demand concerns may keep pressure on prices,” said Ravindra Rao, head of commodity research at Kotak Securities.
Crude oil prices are being supported by concerns about global supply as a result of the Russia-Ukraine situation and lower than anticipated outputs from the OPEC+ countries, according to Rahul Kalantri, vice president for commodities at Mehta Equities Ltd.
In the meantime, domestic retail fuel prices have been stable for more than five weeks. Diesel cost 89.62 rupees a litre and gasoline cost 96.72 rupees in the nation’s capital.
According to experts, the financial health of Indian oil marketing businesses will be impacted by the lack of a modification in the price of gasoline and diesel despite fluctuating global oil prices.
According to Moody’s Investors Service, the net realised prices for gasoline and gasoil at India’s state-owned refining and marketing firms Bharat Petroleum Corp. Ltd., Hindustan Petroleum Corp. Ltd., and Indian Oil Corp. will remain below international pricing for the foreseeable future.
“Nonetheless, we do not expect this situation to be sustained. We expect that the Indian government will eventually allow fuel retailers to adjust selling prices, but the price increases will be implemented gradually,” it said