Oil at Near 4-Year High

India should brace for even higher petrol and diesel rates as it faces bullish global factors that have driven crude prices close to a four-year high above $80 a barrel. On top of that, the rupee has depreciated sharply this year, impacting fuel rates as India imports 80% of its oil needs. Analysts are already talking of oil at $100 next quarter.

OPEC has refused to pump more oil, ignoring US President Trump’s pressure This has driven crude oil above $80 a barrel, and petrol over ₹90/litre in Mumbai.

Commodity traders Trafigura & Mercuria predict crude soaring to $100 by December. Crude oil has risen by 30% since mid-February, when the current bull run began The depreciating rupee has made India’s problems worse In rupee terms, the landed price of crude has risen nearly 50% since mid-February With Iran facing US sanctions, there will be a squeeze on global oil supply Indian consumers will therefore need to pay much more for petrol and diesel,unless the government cuts taxes on fuels State refiners are considering cutting inventory to reduce imports for some time A crude price surge will hurt global demand, which can lead to a price crash like in 2008 when it tumbled from $147 to below $40

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