Crude oil prices rose 6 percent to 3-day highs in the last 5 days. Its current situation continues but fuel prices in India have a share.
The effects of the ongoing unrest in the Middle East are now beginning to be felt across the globe. It may also affect India in a few days. Because of the opposition of Russia and Iran to the European Union, the supply line of crude oil has now started to collapse. Due to the shortage of oil in the international market, crude oil prices increased by 6 percent yesterday, which is at the highest level of the last 3 years. If the current situation is anything to go by, if you don’t see a drop in the price of crude oil in the international market, then testing diesel can be expensive in India as well. Due to which people may have to support inflation once again.
A reduction in US interest rates is also a factor in crude oil prices. The demand for crude oil as a global fuel is being continuously boosted by the US Federal Reserve. That led Brent crude to settle up $1.08, or 1.5 percent, at $74.49 a barrel. U.S. West Texas Intermediate (WTII) crude rose $1.27, or 1.8 percent, to $71.29, the highest in three sessions. Along with this, TI has recorded 6% crude in oil in the period from Monday to Friday i.e. five weeks. It closed at its highest level on Friday, November 7. In the Indian market, Brent futures on the Multi Commodity Exchange (MCX) rose 1.1 percent to close at Rs 6,044 per barrel.
Market experts believe that there is another component in the price of crude oil. Crude oil imports from China, the world’s largest importer, rose for the first time in 7 months in November, data from China showed. Crude remained at high levels until the start of 2020. Many types of Russia have also agreed against the European Union. The US is also considering several measures. He said that oil prices may increase further in the international market.