Brent crude crossed $96 a barrel while WTI moved above $92 amid escalating tensions between the US and Iran.
Despite the sharp rise in global crude prices, petrol and diesel prices in India have remained unchanged this month.
Highlights
- Brent crude climbed above $96 per barrel on September 7.
- WTI crude futures crossed the $92-per-barrel level.
- Crude oil prices have jumped more than 12% in a month.
Global crude oil prices continued to climb as escalating tensions between the United States and Iran increased concerns about disruption to global energy supplies.
On September 7, WTI crude futures were trading at around $92.06 per barrel in morning trade, while Brent crude climbed to about $96.83 per barrel, according to the report. With geopolitical tensions intensifying in West Asia, concerns are growing that crude oil could move above the psychologically important $100-per-barrel mark.
Oil prices have already risen by more than 12% over the past month. The latest rally comes amid fears that prolonged tensions could disrupt oil production, tanker movement and international supply routes.
Reports of attacks involving oil tankers have further heightened concerns over the availability of crude in the global market. Any prolonged disruption to supplies from the region could put additional upward pressure on international oil prices.
Despite the sharp increase in crude prices, Indian consumers have so far not seen a fresh revision in petrol and diesel prices this month. Fuel prices had also remained stable during the previous month, according to the report.
The situation is particularly important for India because of the country’s high dependence on imported crude oil. A sustained increase in international oil prices can raise India’s import bill and increase pressure on inflation, transportation costs and several industries that depend on petroleum products.
Higher crude prices can also affect the broader economy by increasing input costs for businesses and putting pressure on household expenses.
The key question for consumers is whether the current rally in crude will persist long enough to influence domestic fuel prices. Much will depend on the duration of geopolitical tensions, global crude supplies and the pricing decisions of Indian oil marketing companies.
If Brent crude crosses and remains above $100 per barrel, concerns about its impact on India’s energy costs and inflation could intensify further.
