Petrol, diesel prices rise 8th day in a row; crude eases as focus shifts from Saudi supply constraints to global demand concerns

Petrol and diesel prices continued to rise up to 23 paise and 15 paise respectively for the eighth successive day on Tuesday amid reports of fall in crude rates as focus shifted from Saudi Arabia's supply constraints to weak manufacturing data from Europe and Japan.

In Delhi, petrol was selling at Rs 74.13 per litre on Tuesday, Mumbai Rs 79.79, Kolkata Rs 76.82 and in Chennai at 77.06 per litre. Since 16 September, petrol prices have risen by Rs 2.10 in Delhi, Rs 2.08 in Mumbai, Rs 2.06 in Kolkata and Rs 2.21 in Chennai after the drone strikes on Saudi Arabia's oil facilities on 14 September.

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Diesel was priced in Delhi at Rs 67.07 a litre, Mumbai Rs 70.37, Kolkata Rs 69.49 and Chennai at Rs 70.91 per litre.  Diesel prices have gone by to Rs 1.76 in the four major cities during the same period after the drone attacks.

Representational image. Reuters.

Since the beginning of this year, petrol prices have gone up by Rs 5.48, while diesel rate has increased by Rs 4.41 in Delhi.

Petrol prices crossed Rs 90-mark in Mumbai for the first time in September 2018 and touched a peak of Rs 91.34 on 4 October 2018. The rates of diesel had crossed Rs 80-mark in Maximum City during the same period.

Crude oil prices ease

Meanwhile, crude prices eased on Tuesday as weak manufacturing data from Europe and Japan-focused market attention on the gloomy outlook for demand and away from uncertainty around supply disruptions in Saudi Arabia. Brent crude futures fell 35 cents to $64.42 a barrel, while US West Texas Intermediate (WTI) futures were at $58.36, down 28 cents.

“The demand side of the equation is back in focus,” said Michael McCarthy, senior market analyst at CMC Markets in Sydney, pointing to sluggish manufacturing numbers in leading economies in Europe as well as Japan. “That’s why we’re seeing a little bit more (downward) pressure on Brent than West Texas at the moment.”

Still, oil prices remained at comparatively elevated levels for the year in the wake of the 14 September attack on Saudi Arabia’s largest oil processing facility that halved output in the world’s top oil exporter.

Reuters reported that Saudi Arabia has restored more than 75 percent of crude output lost after the attacks on its facilities and will return to full volumes by early next week. But The Wall Street Journal reported on Monday that repairs at the plants could take months longer than anticipated.

“Nine days after the oil facility attack in Saudi Arabia (SA), we still see divergent market views on when the damaged supplies will be restored,” analysts at Nomura said in a note.

“While the damaged plants may be repaired in the next couple of weeks, increasing actual oil supplies may require monitoring.”

European powers—Britain, Germany and France - backed the United States in blaming Iran for the Saudi oil attack, urging Tehran to agree to new talks with world powers on its nuclear and missile programmes and regional security issues.

— With inputs from agencies