The prices of petrol in India stood still despite edging up in the overseas markets supported by the supply cut by OPEC led members and an unexpected fall in U.S. crude supplies. The petrol rates in India were recorded at Rs 72.93 per litre in New Delhi, Rs 74.95 per litre in Kolkata, Rs 78.50 per litre in Mumbai and at Rs Rs 75.69 per litre in Chennai.
In the global scenario, Brent stood at $71.32 per barrel, down by 0.42% and West Texas Intermediate was seen trading at $63.60 per barrel, down by 0.42%.
The Organization of Petroleum Exporting Countries decision to trim down the crude supply to the oil industry to the tune of 1.2 million barrels per day has supported its prices to rally up in the international market since January 2019.
The supply of crude in the global level has been tightened post-U.S. imposition of sanctions on Iran and Venezuela which are barred from exporting crude to other nations. Tehran's crude exports have declined in April to the lowest daily level during 2019, the tanker data indicated a drawdown in the buyer's interest ahead of the further pressure from Washington.
The U.S. has emerged as the biggest producer of crude in the globe, the output from seven major shale formations was expected to rally up by 80,000 barrels per day (bpd) during the month of May to hit a record 8.46 million bpd.
The positive trade talks between the U.S.- China trade dispute and increasing crude production from the U.S. has helped to keep a tab on its prices.
Meanwhile, in India, the ongoing election season has kept the petrol prices to stay firm irrespective of its move in the global markets. The petrol prices in India is mainly determined by rupee-dollar currency exchange ratio, crude rates in global markets.