After remaining stable for two days, petrol and diesel prices rose by 8 paise and 10 paise respectively on Monday in all major cities across the country even as crude oil prices edged up after China’s factories unexpectedly ramped up production in September, easing concerns about demand.
Petrol was priced in Delhi at Rs 74.42 per litre on Monday, Mumbai Rs 80.08, Chennai Rs 77.36 and Kolkata Rs 77.10 a litre, according to data available on Indian Oil Corporation website. Diesel was selling in Delhi at Rs 67.33, Mumbai Rs 70.64, Chennai Rs 71.19 and Kolkata Rs 69.75 per litre.
Petrol prices had touched Rs 80-mark in Mumbai on 27 September for the first time this year.
Petrol prices crossed the 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.
Meanwhile, crude oil prices edged up on Monday after China’s factories unexpectedly ramped up production in September, easing concerns about demand at the world’s largest crude importer amid an ongoing trade war with the United States, reported Reuters.
Brent crude futures rose 9 cents to $62 a barrel while US West Texas Intermediate (WTI) crude futures rose 13 cents to $56.04 a barrel.
The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) for September expanded for a second straight month as Chinese factories ramped up production and new orders rose, beating market expectations.
“The Caixin data was a real surprise and should be positive for Asia’s markets today,” said Jeffrey Halley, OANDA senior analyst in Singapore.
He added that the data would need to post similar results over the next few months to point to a China oil demand growth recovery. The country is the world’s second-largest oil user.
Brent is set to rise 2.6 percent in September, its first monthly gain since June, with prices lifted by an unprecedented attack on Saudi’s oil facilities on 14 September that reduced its production by half. WTI is set to rise 1.7 percent this month.
World’s top oil exporter Saudi Arabia has restored capacity to 11.3 million barrels per day, sources told Reuters last week although Saudi Aramco has yet to confirm it is fully back online.
“Most of this is already priced in when the Saudis said they were going to do it (resume production) fast,” said Avtar Sandu, a senior commodities manager at Phillip Futures in Singapore.
While Saudi Arabia is maintaining exports by using crude from inventories and spare production capacity, how much of it is actually restored could only be determined in the next few weeks, he added.
— With inputs from agencies
Updated Date: Sep 30, 2019 12:45:09 IST