Oil Market
Brent crude breaches $100 per barrel mark again
The rise in crude oil prices comes after negotiations failed to resolve the Russian-Ukrainian conflict. The Brent-indexed crude oil prices had risen by 5 per cent to over $98 per barrel on Monday. Russia is the third largest producer of crude oil in the world. It is feared that sanctions against Russia will start to curtail global supplies and stifle growth.
India open to support initiatives for releases from 'Strategic Petroleum Reserves'
As per Ministry of Petroleum & Natural Gas: "India is also committed to supporting initiatives for releases from 'Strategic Petroleum Reserves', for mitigating market volatility and calming the rise in crude oil prices." Besides, the Ministry said that India is closely monitoring global energy markets as well as potential energy supply disruptions on the back of evolving geopolitical situation.
High crude prices can spike petrol, diesel prices by over Rs 6 per litre: ICRA
According to the ratings agency, the lagged revision in RSPs (retail selling prices) of MS (motor spirit) and HSD (high speed diesel) is warranted by current surge in crude prices at Rs 6-8 per litre. "The impact of the latter on RSPs and the CPI inflation can be absorbed by a roll back in excise duties on these fuels to pre-pandemic levels," ICRA Chief Economist Aditi Nayar said.
Release of US oil inventories douse Crude prices
The price movement comes a day after the Russia-Ukraine war pushed Brent Crude Oil prices to $105 per barrel. Besides, Thursday was the first time since 2014 that crude oil prices crossed the $100 per barrel mark. On the NYMEX WTI index, crude oil prices surged by 5.50 per cent near $97.22 per barrel. Currently, Russia is one of the world's top producers of crude oil and any western sanctions against the country will stiffen the global supply.
Oil prices rise amid Russia-Ukraine tensions
The West Texas Intermediate for April delivery added 71 cents to settle at $92.81 a barrel on the New York Mercantile Exchange, after hitting a session high of $100.54. Brent crude for April delivery increased $2.24 to close at $99.08 a barrel on the London ICE Futures Exchange, after touching $105.77 earlier in the session.
Biden likely to release another round of US emergency oil stockpile
Croft, a former CIA analyst, added that the size of the release will "likely be larger" than the one announced in November that provided just modest relief to American drivers filling up at gas pumps, the report said.Although emergency oil releases can help cushion the blow from supply shortages, they won't solve the underlying supply-demand imbalance that drove energy prices to seven-year highs even before the invasion of Ukraine.
Russia-Ukraine war sends Brent Crude Oil prices beyond $100
On Thursday, Russian President Vladimir Putin announced a military operation in Ukraine. Besides, crude oil prices surged by 5.50 per cent near 97.22 per barrel on the NYMEX WTI index. Notably, Russia is one of the world's top producers of crude oil and any western sanctions against Russia will stiffen the global supply.
India among most exposed Asian economies to oil price shocks
India is exposed on both inflation and current account fronts, Thailand is exposed via its current account but relatively less so on inflation, and in contrast, South Korea is exposed on inflation but not current account deficit. The Indian government could consider a reduction in fuel excise duty cut (Rs 5-10/lt).
Oil prices rise amid Ukraine tensions
The West Texas Intermediate for March delivery added 1.28 dollars, or 1.4 per cent, to settle at 92.35 dollars a barrel on the New York Mercantile Exchange, on its expiration day. Brent crude for April delivery increased 1.45 dollars, or 1.5 per cent, to close at 96.84 dollars a barrel on the London ICE Futures Exchange. The front-month contract of the international benchmark notched its highest finish since September 29, 2014, according to Dow Jones Market Data.
War Premia: Geo-political tensions boil crude Oil prices
Accordingly, the Brent-indexed crude oil prices crossed $95 per barrel, the highest in several years. Crude oil prices inclined to a multi-year high level as Russian President Vladimir Putin ordered the deployment of troops into two separatist areas within Ukraine. On Monday, Russia recognised the two separatist regions' independence, a move that some fear puts Ukraine and Russia one step closer to a military conflict.
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