Crude Oil Price Hits 11-Month High On Saudi Arabia's Output Cut; Unaffected By US Riots

Fuel consumers in India may have to brace themselves for a further rise in petrol and diesel prices, that are already at all-time highs in some cities, as international crude oil prices continue to climb.

After Saudi Arabia agreed to make bigger cuts in output than expected during a meeting with allied producers, traders of the commodity have been focusing on tighter supplies, shrugging off the recent political turmoil in the United States.

On Tuesday, Saudi Arabia, the world's biggest oil exporter, agreed to make additional, voluntary oil output cuts of 1 million barrels per day (bpd) in February and March, after a meeting with the Organization of the Petroleum Exporting Countries (OPEC) and other major producers.

As the coronavirus threat refuses to curb and some countries impose new lockdowns, world producers are looking at ways to support prices.

Brent crude, the international benchmark for oil prices, climbed 2 cents to $54.40 a barrel on Friday, after closing slightly higher the previous day. It touched $54.90 on Thursday, the highest since February.

On Wednesday, crude futures prices briefly dipped when President Donald Trump's supporters stormed the US Capitol after he urged them to protest Congress's certification of his election loss. Rates recovered on Thursday.

Retail prices of fuel in India are revised daily by oil marketing companies based on international crude oil rates and rupee's exchange value.

On Thursday, petrol price in Delhi hit a new all-time high of Rs 84.2 per litre.