Crude oil prices are rising globally, but petrol-diesel rates in India remain stable. Iran's warning has heightened supply concerns.
In the global market, crude oil prices have been rising for the fifth consecutive day. Due to increasing tensions in the Middle East and heightened concerns about oil supply, Brent crude is heading for its biggest weekly gain since April.
In the global market, Brent crude has risen by $1.05, or about 1.25%, to $85.28 per barrel.
Meanwhile, US West Texas Intermediate (WTI) crude was trading at $79.98 per barrel, up by $1.03, or about 1.3%.
This week, both Brent and WTI have recorded a gain of about 12%, indicating significant activity in the crude oil market.
Despite the rise in crude oil prices in the international market, retail rates of petrol and diesel in India have not been changed for now. The updated retail prices of petrol and diesel have been released in the country, and they remain stable.
In India, petrol and diesel prices are determined by state-owned oil marketing companies (OMCs), so the impact of international prices is not immediately reflected in retail rates.
The prices of petrol and diesel in various cities of the country are as follows:
This surge in the oil market is due to growing geopolitical tensions in the Middle East. The military conflict between Iran and the US has intensified, raising concerns about oil supply.
After the ceasefire broke, the Joint Maritime Information Center raised the threat level for Hormuz to 'severe'.
Additionally, concerns are also being raised about another important maritime route, Bab al-Mandeb. According to a Reuters report, Iran has instructed Yemen's Houthi rebels to close the Bab-al-Mandeb strait if Iran's electricity infrastructure is targeted.
This route is extremely important for Saudi Arabia's oil exports. If this route also faces a blockade or attacks on oil tankers like in Hormuz, a sharp rise in crude oil prices could be seen.
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