By Aditya Raghunath
Investing.com -- Crude oil prices have gone up almost 9% in June, from $66.71 at the end of May to $72.7 on June 15. Petrol and diesel prices in the country are going up as well, and India is one of the most expensive countries in the world when it comes to fuel prices. A litre of petrol costs Rs 102.58 in Mumbai while a litre of diesel goes for Rs 94.7.
A large part of the increase in oil prices is the result of the world economy opening up. As demand for oil continues to rise, supply is curtailed. The Organisation of Petroleum Exporting Countries’ (OPEC) June report said that it expects demand to average 96.58 million barrels per day for 2021 with the demand increase setting in in the second half of the year. In 2020, demand had fallen to 90.63 million barrels a day.
A Reuters report said that a note from ING Economics quoted, “Additional supply from OPEC+ will be needed over the second half of this year, with demand expected to continue its recovery.”
There was talk that Iran, which produces a significant amount of the world’s oil, would also start supplying oil to the world. However, tensions between the US and Iran are at a high, and it is unlikely that sanctions on Iran will be lifted anytime soon. As long as sanctions on Iran are in place, it is OPEC’s call to decide the supply of oil in the world. India is the third-largest exporter of oil, and it will continue to experience high fuel prices for the time being.
Iran Tensions Making Petrol, Diesel More Expensive for India - Investing.com India
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