Fuel price in the country was lowered by oil marketing companies for the thirteenth consecutive day, providing much-needed relief to the consumers in India. Petrol price per litre was priced at Rs 79.55 in New Delhi, Rs 81.43 in Kolkata, Rs 85.04 in Mumbai and Rs 82.65 in Chennai. Diesel rates per litre were also reduced to Rs 73.78 in New Delhi, Rs 75.63 in Kolkata, Rs 77.32 in Mumbai and Rs 78 in Chennai.
The decline in rates in this month has been a result of the fall in global crude oil prices that are being weighed down by the weakness in global stock markets and signs a rise in global supply despite the approaching deadline of US sanctions on Iran.
International benchmark Brent fell by 0.4 percent to $77.05 a barrel, according to a Reuters report. Oil markets also caught up in the global financial market slump seen in the last two weeks. Stocks fell further after reports suggested that Washington is planning on imposing an additional $257 billion worth of tariffs on China if talks to end trade war between the two countries do not succeed.
Another factor weighing on crude is the signs of rising supply from the top oil producers in the world. To make up for the deficit that will be caused by the cut in supply from Iran next week (sanctions kick-in on 4 November), Saudi Arabia and Russia have indicated that they would increase their output.
Refinitiv Eikon data showed that crude output from the world's top 3 producers: Saudi Arabia, Russia and the United States, reached 33 million barrels per day (bpd) for the first time in September, pointing out that there has been ample supply. Analysts worry that a further increase in supply amid falling global demand could lead to a problem of oversupply in the market.