Petrol price declined by 8 paise and diesel rate while continuing its upward move for the seventh successive day rose by up to 13 paise on Wednesday in major cities across the country.
After the revision in the price on Wednesday, petrol was sold in Delhi at Rs 70.33 a litre, Mumbai Rs 75.97, Chennai Rs 73 and Kolkata Rs 72.44 per litre, according to data available on Indian Oil Corporation website.
Accordingly, diesel was priced at Rs 64.59 a litre, Mumbai Rs 67.62, Chennai Rs 68.22 and Kolkata Rs 66.36 per litre.
Meanwhile, crude oil prices firmed on Wednesday after climbing about 3 percent in the previous session as expectations that the supply cuts led by the Organisation of the Petroleum Exporting Countries (OPEC) will tighten markets despite signs of a global economic slowdown.
Brent crude oil futures were at $60.83 per barrel, 19 cents, or 0.3 percent above their last close. West Texas Intermediate (WTI) crude futures were up 10 cents, or 0.2 percent, at $52.21 a barrel.
“It seems the oil market is looking at Saudi Arabia’s aggressive supply cuts and Chinese aggressive stimulus,” said Jonathan Barratt, chief investment officer at Probis Securities in Sydney.
China’s central bank on Wednesday made its biggest daily net cash injection via reverse repo operations on record, more evidence that authorities are shifting to policy easing to counter a slowdown in Asia’s biggest economy.
Earlier this week, China reported poor December trade data, with both exports and imports contracting from a year earlier.
“Situation of a developing shortage might arise if the Sino-US trade war goes away, the Chinese economy kicks into gear, Brexit is solved and the United States make good threats on Iran,” Barratt said.
Oil prices on Wednesday, however, were prevented from rising further as signs of economic slowdown mounted elsewhere across the globe.
OPEC cuts support crude
Fundamentally, oil markets are receiving support from supply cuts by producer group the Organization of the OPEC and major non-OPEC producer Russia.
OPEC and its allies will meet on 17-18 April in Vienna to review their oil supply cut deal, and the panel is to be chaired by Saudi Arabia and Russia.
“OPEC production cuts will limit inventory builds to those justified by higher demand, which should settle the market in a sustainable range above $70 per barrel,” according to Standard Chartered Bank.
— With inputs from Reuters
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Updated Date: Jan 16, 2019 17:14:37 IST