Petrol, diesel prices rise for sixth straight day on weak rupee, rising crude; economic slowdown dims fuel demand outlook

Petrol and diesel prices rose for the sixth straight day on Tuesday by up to 28 paise and 31 paise respectively in major cities across the country in the aftermath of weakening rupee and a northward move of crude oil rates in the international market. Following the price revision on Tuesday, petrol was sold in Delhi at Rs 70.41 per litre, Mumbai Rs 76.05, Chennai Rs 72.52 and Kolkata Rs 73.08 a litre, according to data available on Indian Oil Corporation’s website. Diesel in Delhi was retailed at Rs 64.47 per litre, Mumbai Rs 67.49, Chennai Rs 68.09 and Kolkata Rs 66.24 a litre. Meanwhile, crude oil prices rose by around 1 percent on Tuesday amid supply cuts led by producer club Organisation of the Petroleum Exporting Countries (OPEC) and Russia, although a darkening economic outlook may soon weigh on growth in fuel demand, reported Reuters. [caption id=“attachment_5088251” align=“alignleft” width=“380”] Representational image. Reuters[/caption] International Brent crude oil futures were at $59.62 per barrel, up 63 cents, or 1.1 percent, from their last close. US West Texas Intermediate (WTI) crude futures were at $51.14 per barrel, up 63 cents, or 1.3 percent. “OPEC-led cuts and declining US rig counts have bolstered market sentiment in the New Year,” Singapore-based brokerage Phillip Futures said on Tuesday. The Middle East-dominated producer club of the OPEC and some non-OPEC allies, including Russia, agreed in late 2018 to cut supply to rein in a global glut. In the United States, the amount of rigs looking for new oil production has dropped from a 2018-peak of 888 to a still high number of 873 in early 2019, pointing to a potential dent in production growth which was at more than 2 million barrels per day (bpd) last year, bringing American crude output to a record 11.7 million bpd. Meanwhile, the United States last November re-imposed sanctions against Iran’s oil exports. Although Washington granted sanctions waivers to Iran’s biggest oil customers, mostly in Asia, the Middle Eastern country’s exports have plummeted since. “Iranian exports have already fallen sharply and are likely to remain at around 1.3 million bpd in 2019, 1.3 million bpd down vs their 1H18 average,” HSBC said in its 2019 oil market outlook. However, Japan expects to restart oil imports from Iran within this month, the Nikkei business daily reported on Tuesday, with some Japanese banks notifying customers they will resume transactions for oil purchases. — With inputs from Reuters     To keep watching India’s No. 1 English Business News Channel – CNBC-TV18, call your Cable or DTH Operator and ask for the Colors Family Pack (inclusive of 24 channels), available for Rs. 35/- per month, or subscribe to the channel for Rs. 4/- per day. To keep watching the Leader in Global Market & Business News – CNBC-TV18 Prime HD, call your Cable or DTH Operator and ask for the Colors Family HD Pack (inclusive of 25 channels), available for Rs. 50/- per month, or subscribe to the channel for Rs. 1/- per day.