Petrol and diesel prices were slashed by 18-22 paise on Monday even as oil markets rose on signs that the recent price plunge may start crimping supply from the United States.
This was for the fourth day in a row, fuel rates were cut across major cities in the country after a fall in crude oil rates in the international market during the last week.
Following Monday's rate cut, petrol price fell below Rs 70-mark in Delhi for the first time this year to 69.86 per litre. In Mumbai, petrol was sold at 75.48 a litre, Chennai Rs 72.48 and Kolkata Rs 71.96 a litre, according to data available on Indian Oil Corporation website.
In Delhi, diesel was retailed at Rs 63.83 per litre, Mumbai 66.79, Chennai Rs 67.38 and Kolkata Rs 65.59 a litre.
Meanwhile, oil markets rose on Monday on signs that the recent price plunge may start crimping supply from the United States, currently the world’s biggest crude producer, though concerns about the global economy continued to weigh.
International benchmark Brent crude futures had risen 30 cents, or 0.56 percent, to $54.12 a barrel, at one point climbing as far as $54.66.
US West Texas Intermediate (WTI) crude futures were up 15 cents, or 0.33 percent, at $45.74 a barrel. They earlier climbed as high as $46.24.
Crude prices rebounded from sharp declines last week. Brent fell 11 percent for the week, dropping to its lowest since September 2017 on Friday, while WTI also lost 11 percent last week, its worst weekly performance since January 2016.
Both benchmarks are down more than 35 percent from their recent peaks in early October.
The price plunge has caused US shale oil producers to curtail drilling plans for next year.
The boom in US shale output has boosted the country into the top producer spot over traditional suppliers Saudi Arabia and Russia. The industry is at the centre of US president Donald Trump’s calls to boost the country’s energy independence.
With inputs from Reuters
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Updated Date: Dec 24, 2018 15:27:54 IST