Petrol Price in Maharashtra (25th April 2024)

The petrol prices are unmoved in Mumbai for a long time since mid-May despite a slight drop in the crude rates in the global markets. The petrol rates in Mumbai traded at Rs 106.31 per litre.

In the international forum, Brent was seen at $85.54 per barrel, down by 1.24% and West Texas Intermediate (WTI) at $79.15 per barrel, down by 1.24%.

Earlier in the session, both the crude benchmarks had declined by over $2 per barrel but it pared some losses after the data showed that the U.S. Consumer Price Index (CPI) accelerated at its slowest annual pace since late fiscal 2021. The situation has raised the likelihood of a less aggressive stance from the Fed in the coming months.

Analysts note that the financial markets are still taking time to digest the outcome of the CPI data. The rate hike expectations have moved up and down and the volatile movement has influenced asset classes like crude.

Yesterday, the U.S. Department of Energy (DOE) announced that it would sell 26 million barrels of crude from its strategic petroleum reserve (SPR). The United States of America’s SPR is at its lowest level since 1983.

The DOE had even considered cancelling the sale after Joe Biden’s administration had sold a record 180 million barrels of crude from the reserve.

But the move from DOE will require Congress to act to change the mandate.

The petrol prices are consistent in Mumbai despite witnessing a fall in global fuel prices marginally as investors' focus will stick to the release of the U.S. inflation data. The petrol rates in Mumbai were recorded at Rs 106.31 per litre.

In the international scenario, Brent stood at $85.62 per barrel, down by 0.89% and West Texas Intermediate (WTI) at $78.89 per barrel, down by 1.04%.

The crude prices which were witnessing positive growth last week kickstarted the week with a marginal drop in the rates. The drop in fuel demand has added concerns to the existing issues, which the oil markets are currently facing.

An analyst from OANDA notes that the crude prices are softening as energy traders are forecasting a potentially weak fuel demand in the coming days and this might force the Fed to tighten the policy stance much more aggressively.

He further added that this week could deliver a make-or-break moment in how bad of a recession, the Wall Street Prices are in.

The Fed has lately eased the interest rates amidst declining inflation rates.

The resumption of Azerbaijani oil exports at Turkey’s Ceyhan amidst the devastating earthquake which completely shook Turkey has relieved supply concerns.

Last week, Russia announced its plans to trim down crude production in retaliation against western curbs on its oil imports which were imposed in response to Moscow's invasion of Ukraine.

The petrol prices are stagnant in Mumbai despite an uptick in the crude rates in the global markets. The petrol rates in Mumbai were recorded at Rs 106.31 per litre.

In the overseas forum, Brent stood at $86.39 per barrel, up by 2.24% and West Texas Intermediate (WTI) at $79.72 per barrel, up by 2.13%.

Russia’s Deputy Prime Minister – Alexander Novak said that the country plans to cut down its crude oil production in March by 500,000 barrels per day (bpd). This will account for around 5% of the output.

The shortage of supply in the oil markets has bolstered fuel prices to shoot up in the global markets.

The western nations are trying their best to choke off Moscow’s oil revenues in response to its ongoing war with its neighbour Ukraine. The trim in the output from Russia indicates that the European Union’s decision on a price cap ban on Russia’s oil products will have some impact on the markets.

Analysts note that the drop in Russia’s oil production by 700,000 – 900,000 barrels in 2023 is in line with market expectations. They further noted that the key for the crude to break out of the current trading range is an uptick in China’s crude demand in the coming months post-recovery from the pandemic crisis.

11 February 2023

The petrol prices are little changed in Mumbai despite march in the global crude rates as Russia plans to cut down production beginning next month. The petrol rates in Mumbai were recorded at Rs 106.31 per litre.

In the global forum, Brent was seen at $86.30 per barrel, up by 2.17 per cent and West Texas Intermediate (WTI) at $79.69 per barrel, up by 2.09 per cent.

The G7 economies, Australia and the European Union have together agreed to impose a ban on the use of the Western-supplied maritime insurance, brokering and finance for seaborne Russian oil which is priced over $60 per barrel. The move came into effect on December 5 as a part of the Western sanctions over Moscow.

Apart from this, the European Union has also banned the purchase of Russian oil products and set a price cap from February 5, 2023.

Moscow is set to cut down its fuel production from March in the wake of the EU’s sanction on its fuel imports.

Russia’s Deputy Prime Minister – Alexander Novak said that the country plans to cut down its oil production in March 2023 by 500,000 barrels per day, accounting for around 5 per cent of the output.

Analysts note that the Russian economy is fraying in the face of the Western nations-imposed sanctions.

The petrol prices are unmoved in Mumbai despite the edging of crude rates in the international markets. The petrol rates in Mumbai were recorded at Rs 106.31 per litre.

In the international markets, Brent was seen at $80.46 per barrel, up by 0.65% and West Texas Intermediate (WTI) at $73.73 per barrel, up by 0.46%.

The markets are fearing the recession which has dominated the markets currently, weighing on the crude prices to witness a drastic fall. The International Energy Agency (IEA) Executive Director – Fatih Birol has highlighted that China’s recovery has remained a key driver for crude prices at the moment.

China is the world’s largest crude importer globally, the improvement in the fuel demand from the dragon country will indeed uplift the global crude rates, which have seen a drastic drop of 8 per cent recently.

The IEA is forecasting that half of the global crude demand growth for the year will come from China, wherein the jet fuel demand is witnessing a surge.

Based on the fuel demand recovery, the Organization of the Petroleum Exporting Countries (OPEC+) members will have to reassess their decision to trim output by 2 million barrels per day through 2023.

Analysts note that the higher interest rates will keep a lid on further price gains, as it will curtail economic growth and hike the fuel demand.

6 February 2023

The petrol prices are stable in Mumbai despite witnessing a fall in the global markets as Russia’s crude imports ban begins. The petrol rates in Mumbai were recorded at Rs 106.31 per litre.

In the overseas forum, Brent was seen at $82.51 per barrel, down by 0.40% and West Texas Intermediate (WTI) at $76.23 per barrel, down by 0.24%.

On Thursday, the fuel prices slipped slightly as looming sanctions on Moscow’s oil products have added uncertainty over the fuel supply and a build in the U.S. fuel stocks has suggested sluggish demand despite signs of an improved global economy’s revival.

The U.S. government data showed a large build in the crude stock leading to the plunge in both benchmarks by over 3 per cent.

The European Union’s ban on Russia’s refined products will come into effect from February 5, 2023, and this will potentially blow the global crude supply.

The European Union nations will seek a deal tomorrow on a European Commission proposal to set a price cap on Moscow’s crude products after postponing a decision yesterday due to the divisions amongst the member states.

The European Commission proposed last week that the EU can apply a price cap of $100 per barrel on premium Russian oil products like diesel and a $45 per barrel cap on discounted products like fuel oil.

2 February 2023

The petrol prices are stout in Mumbai despite a marginal drop in the crude rates in the overseas markets on Tuesday’s trade session. The petrol rates in Mumbai are recorded at Rs 106.31 per litre.

In the global scenario, the crude benchmark – Brent was seen at $84.92 per barrel and West Texas Intermediate (WTI) at $77.54 per barrel, down by 0.46%.

The market has now turned its focus towards the outcome of the planned virtual meeting of the members of the oil producers club. The Organization of the Petroleum Exporting Countries (OPEC) and its member partners including Russia are all set to meet tomorrow to decide on the future of the output policies.

Sources close to the OPEC have revealed that the oil producers are likely to keep the current output levels unchanged when it meets as the fears of economic slowdown grow.

The Fed is likely to ease the interest rate hike to 25 basis points from its earlier tally of a 50 basis point hike announced in December 2022.

China, which witnessed a steep surge in the pandemic cases had announced a stew of stringent measures to control the rising infection rates. Currently, the dip in the infection levels and reopening of the economy amidst the Lunar New Year has shown vital signs of potential healthy fuel demand coming from China.

31 January 2023

The petrol prices are unvaried in Mumbai despite witnessing a fall in the international markets on a stronger supply outlook. The petrol rates in Mumbai traded at Rs 106.31 per litre.

In the international markets, Brent was seen at $86.66 per barrel, down by 0.93% and West Texas Intermediate (WTI) at $79.68 per barrel, down by 1.64%.

The crude prices slipped down in the international markets to finish flat to lower. The indications of a strong Russian crude supply have offset better-than-expected U.S. economic growth data, and hopes of a surge in the recovery in Chinese demand.

The oil loadings from Russia’s Baltic ports are all set to increase by 50 per cent this month from December 2022’s tally as sellers try to meet the strong demand in Asia and benefit from rising prices of global energy.

The U.S. energy firms for this week have kept the oil and natural gas rigs firm at 771, energy services firm – Baker Hughes Co noted this in its closely followed report.

Meanwhile, the members of the Organization of the Petroleum Exporting Countries (OPEC+) delegates will be meeting next week to review crude production levels. The sources from the oil producers group are expecting no change in the current output policy.

29 January 2023

The petrol prices in Mumbai were unmoved even as the OPEC+ members are likely to continue with the existing crude output without making any changes as the members are set to meet shortly. The petrol rates in Mumbai were recorded at Rs 106.31 per litre.

In the international platform, the crude benchmark - Brent was seen at $85.92 per barrel, down by 0.24% and West Texas Intermediate (WTI) at $79.81 per barrel, down by $0.40%.

Analysts note that the reopening of the Chinese economy after a surge in the pandemic cases and subsequent imposition of COVID restrictions could unleash a large wave of pent-up demand over the next 18 months (about 1 and a half years).

Oil prices shed around 1.5 per cent for the week following recession jitters.

On the supply side, the volumes of crude should remain firm for the medium term as the Organization of the Petroleum Exporting Countries (OPEC) and its allies are expected to keep their output policy steady.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, scheduled to meet next week, noted that the hopes for higher crude demand from China are balanced with the growing worries of inflation and the slowdown in the global economy.

During October 2022, the oil-producing members agreed to trim down the output by 2 million barrels per day, starting from November through 2023, owing to the weak economic outlook.

The petrol prices in Mumbai have been stagnant for a long time since May 22, 2022, despite mixed results in the international markets. The petrol rates in Mumbai traded at Rs 106.31 per litre.

In the international scenario, the crude benchmark – Brent was trading at $87.98 per barrel, down by 0.24% and West Texas Intermediate (WTI) at $81.53 per barrel, down by 0.11%.

The petrol prices in India see regular revisions at 6:00 in the morning in line with the changes in crude rates in the global markets, currency exchange rates and a host of other factors.

The slowdown in the hopes of an interest rate hike added to growing concerns over the health of the U.S. and has put a cap on the growth of fuel prices.

China, the largest importer of fuel globally, is set to ramp up the purchase of fuel after emerging from the lockdowns. The crude oil rates in the physical markets have started to surge following the easing of norms in China. The situation has prompted buyers and traders to ramp up purchases and stock the oil as markets worry that the sanctions on Russia could tighten crude supply.

The continued tensions between Russia and Ukraine have forced many western nations to impose a ban on the purchase of Moscow’s crude, tightening the oil markets.

24 January 2023