On Friday, 16 July, crude oil prices headed for their biggest weekly drop since May this year as expectations of more supplies spooked investors. In India, however, the price of petrol and diesel touched record highs.
Mumbai’s petrol cost is the highest across metro cities, standing at a staggering Rs 107.54 per litre. Diesel in the country’s financial capital costs Rs 97.45 per litre. Petrol in the national capital now costs Rs 101.54 per litre, while Diesel in the capital city is retailing at Rs 89.87 per litre.
Fuel prices have increased 40 times since May 4 and nine times this month. The price of petrol in Delhi has increased by Rs 10.85, while diesel price has surged Rs by 10.80 per litre since the rates started increasing. Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices on a daily basis in line with benchmark international price and foreign exchange rates.
Discussions on supply policy within the Organization of the Petroleum Exporting Countries, Russia and other producers, a group called OPEC+, ended without agreement this month after the United Arab Emirates (UAE) objected to extending the output policy beyond April 2022.
Saudi Arabia and the UAE reached a compromise this week, paving the way for OPEC+ to finalise an agreement that would allow more supply into the market.
OPEC said on Thursday it expects world oil demand to increase next year to around levels seen before the pandemic, about 100 million barrels per day (bpd), led by demand growth in the United States, China and India.
OPEC output in June increased by 590,000 bpd to 26.03 million bpd. Output should rise further in July on the back of larger quotas. Oil industry experts, however, expect global demand for oil in July and August to be roughly 1.7% below 2019 levels. Brent crude for September was down by 37 cents at $73.10 a barrel, heading for a 3.2% fall this week after two days of heavy declines. U.S. crude for August fell by 35 cents to $71.30 a barrel, on track for a decline of more than 4% this week, its largest weekly drop since March.