Reduction in Saudi Arabia’s oil production will delay price review in India
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ANI
Saudi Arabia said on Sunday it would cut oil production by 10 barrels per day from July. On the other hand, OPEC and other producers agreed to extend the supply cuts through the end of 2024.
New Delhi. Saudi Arabia’s announcement to cut oil production may halt the fall in international crude oil prices. Industry sources said that in such a situation the review of fuel prices in India will be delayed. Saudi Arabia said on Sunday it would cut oil production by 10 barrels per day from July. On the other hand, OPEC and other producers agreed to extend the supply cuts through the end of 2024. The decision caused oil prices to rise by more than a dollar per barrel on Monday.
Brent crude futures were up $1.51, or two per cent, at $77.64 a barrel in early trade after hitting a high of $78.73 a barrel. This rise will counter the softening in the prices of imported crude oil for India. In the past, India had to pay an average rate of $72 per barrel for imported oil.
In such a situation, it was expected that the prices of petrol and diesel could be cut. Public sector oil companies were recovering their losses, said an industry official. Last month, international oil prices and retail selling prices had become equal. Now with prices rising, the difference between cost and selling price will again come up. India meets 85 per cent of its oil needs through imports and fuel prices are influenced by international rates. Petrol costs Rs 96.72 per liter and diesel costs Rs 89.62 per liter in the national capital.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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