:: Technical --- ID :: 19315
Local fuel prices may dip as crude cools to $78/barrel
Local fuel prices may dip as crude cools to $78/barrel

Local fuel prices may dip as crude cools to $78/barrel

Crude oil prices traded around $78 a barrel on Monday, about $7 lower since November 9, brightening chances of a reduction in domestic fuel prices that have remained unchanged since Diwali earlier this month when duties were slashed.

State-run oil companies are supposed to revise petrol and diesel prices daily to align these with the global rates. But companies often tend to avoid daily revisions to keep prices stable, and thus make domestic fuel price patterns harder to predict.

Domestic prices largely depend on the fuel rates in the international market as well as the currency exchange rate.

Crude oil prices have been volatile this month, rising from $81 a barrel on November 4 to more than $85 on November 9 and falling since then to $78. Oil traders are faced with multiple, contradictory demand and supply signals, resulting in volatility.

The decline of the past few days has been driven by the US move to cobble up a coalition of big oil consumers that can release emergency crude reserves to calm down prices. China is on board while Japan, the fourth-largest oil consumer, has said it's considering the request for a coordinated release though Japanese law bars use of petroleum reserve for tackling prices.

The Economic Times 23-11-2021