No change in petrol, diesel prices as concerns of oversupply, global economic slump keep markets under pressure
Global benchmark Brent was up 0.85 percent, or 49 cents, at $56.75 per barrel
Petrol and diesel prices remain unchanged on Wednesday following hikes for two consecutive days as US crude prices rose amid worries about oversupply and a slowing global economy that is keeping markets under pressure.
Petrol was sold at Rs 70.63 per litre in Delhi, Rs 76.25 in Mumbai, Rs 73.29 in Chennai and at Rs 72.71 per litre in Kolkata, as per the data available on Indian Oil Corporation website. Diesel was being retailed at Rs 64.54 a litre in Delhi, Rs 67.55 in Mumbai, Rs 68.14 in Chennai and at Rs 66.30 per litre in Kolkata.
Meanwhile, US crude oil had climbed 37 cents, or 0.8 percent, to $46.24 per barrel, after plunging 7.3 percent the day before in a session when it touched its lowest since August last year at $45.79.
Global benchmark Brent was up 0.85 percent, or 49 cents, at $56.75 per barrel. It dropped 5.62 percent on Tuesday, at one point marking a 14-month low of $56.16 a barrel.
“The toxic combination of oversupply worries and global growth distress should see oil prices languish into year-end as negative momentum is leading price action,” said Stephen Innes, head of trading for Asia-Pacific at OANDA.
US crude stocks rose unexpectedly last week, while gasoline inventories increased, industry group the American Petroleum Institute said on Tuesday.
If the build in crude stockpiles is confirmed by US government data on Wednesday, it will be the first increase in three weeks.
Meanwhile, analysts said that upcoming output cuts led by the Organization of the Petroleum Exporting Countries (OPEC) had so far failed to stimulate the market as they were not due to kick in until next month.
Output from de facto OPEC leader Saudi Arabia as well as the United States and Russia - leading producers outside the group - has been at or near record highs.
The US government has said shale production is expected to climb to over 8 million barrels per day (bpd) for the first time on record by the end of December.
Russian oil output hit a record 11.42 million bpd this month, an industry source told Reuters.
However, there were some factors tightening supply, with Libya’s state oil company declaring force majeure at the country’s largest oilfield.
That came a week after the firm announced a contractual waiver on exports from the field following its seizure by protesters.
As per government data, the average retail prices of packaged edible oils have ease slightly, except for groundnut oil, across the country since the beginning of this month and are ruling between Rs 150 and 190 per kg
Although it’s unclear exactly how much money drivers would save as a result of a gas tax holiday, the Biden administration says that a three- month suspension of taxes would cost about $10 million
India has become a significant importer of Russian crude oil, buying 18 per cent of the country’s exports. A significant share of the crude is re-exported as refined oil products, including to the US and Europe, an important loophole to close, said Centre for Research on Energy and Clean Air (CREA)