Petrol prices in India fell on Friday despite the rise in oil rates in the Asian markets in early market trade. Diesel rates, on the other hand, remained unchanged.
International benchmark Brent crude was trading 1.4 percent higher at $74.07 per barrel. US West Texas Intermediate (WTI) was at $66.45 a barrel, also up by 1.4 percent from the previous close. Global crude prices were pushed higher by uncertainty over the decision of OPEC (Organization of Petroleum Exporting Countries) on increasing production at their meeting later today.
Meanwhile, petrol prices across India were lowered by an average of 14 paise per litre to Rs 76.02 in Delhi, Rs 78.70 in Kolkata, Rs 83.74 in Mumbai and Rs 78.89 in Chennai. On the other hand, diesel rates across India were stagnating at Rs 67.68 per litre in Delhi, Rs 70.23 in Kolkata, Rs 71.99 in Mumbai and Rs 71.44 in Chennai.
The OPEC are set to meet today along with one of the largest oil producer-Russia (non-OPEC member) in their headquarters in Vienna, Austria, to discuss policy changes. Saudi Arabia, the top producer amoung the members and Russia have shown favour towards an increase in output while another OPEC member Iran, has opposed it. The decision from the meeting, therefore, remains uncertain.
Meanwhile, the US reported a drop in the commercial crude inventories by 3 million barrels to 430.6 million for the week ending 15 June as per the data published by American Petroleum Institute this week. The drop in inventory is an indicator of a strong prevailing global demand for crude oil. If OPEC decides against increasing production, it could push the oil price higher in the coming days.