India Diversifies Crude Oil Sources, Reduces Dependency on Russia
In an effort to reduce dependency on any single country for crude oil supply, the central government of India has successfully diversified its oil purchases. Notably, India is no longer overly reliant on Russia, despite its reputation for supplying cheap oil. Union Petroleum and Natural Gas Minister Hardeep Singh Puri highlighted the country’s varied sources of oil purchases, with many countries now approaching India with the promise of lower prices.
The Ministry of Petroleum and Natural Gas recently discussed India’s crude oil purchase policy in an interview with CNBC channel. This strategy has proven beneficial for India, ensuring that the country’s fuel needs are not solely controlled by any single nation.
Crude Oil Trading Sees Volatility
Last week, the crude oil market experienced extreme volatility in trading. While the first half of the week witnessed setbacks, the second half saw significant improvements, nearly compensating for the earlier losses. The Brent crude futures contract on the Intercontinental Exchange (ICE) closed up 0.4 percent at $84.50, offering hope for a more stable oil market. Conversely, crude oil futures on the Multi Commodity Exchange (MCX) lost 3.3 percent, closing at Rs 6,503.
Influencing Factors on Crude Oil Market
Recent hints from the US Federal Reserve about raising key interest rates have bolstered the dollar and resulted in rising US bond yields. However, the decline in US fuel production over the past two days has raised concerns. The Energy Information Administration (EIA) reported a production shortfall of 610,000 barrels in the US for the week ending August 18, a figure significantly higher than the expected drop of 290,000 barrels.
Fuel Prices Remain Stable
Today, there have been no significant changes in fuel prices across major cities in India. In Delhi, petrol remains priced at Rs 96.72 per liter, while diesel remains at Rs 89.62. In Mumbai, petrol is priced at Rs 106.31 and diesel at Rs 94.27. Kolkata witnesses petrol prices at Rs 106.03 and diesel prices at Rs 92.76. In Chennai, petrol remains at Rs 102.63, and diesel remains at Rs 94.24.
Petrol and Diesel Prices in Kerala Unaffected
In Kerala, Sunday saw no change in petrol and diesel prices. Thiruvananthapuram witnessed petrol priced at Rs 109.73 per liter and diesel at Rs 98.53. Kochi recorded petrol prices at Rs 107.78 and diesel at Rs 96.70. In Kozhikode, petrol was priced at Rs 108.28, and diesel at Rs 97.20.
Clearly, India is making significant strides in diversifying its sources of crude oil and ensuring stability in fuel prices. This approach strengthens the country’s energy security and reduces vulnerability from external factors. By exploring multiple options and engaging in strategic negotiations, India continues to prove its resilience in the global energy market.
The central government is not overly dependent on any country supplying crude oil for the country’s fuel needs. India is also not overly dependent on Russia, which supplies cheap oil. Sources of oil purchases for the country are varied. Union Petroleum and Natural Gas Minister Hardeep Singh Puri said that many countries are approaching India with the promise of lower prices. In an interview with CNBC channel, India’s crude oil purchase policy was explained.
Crude oil trading
Crude has seen extreme volatility in trading over the past week. While a setback was seen during the first half of the week, crude oil prices improved in the second half. With this, the loss suffered in the first half was almost compensated. The Brent crude futures contract on the Intercontinental Exchange (ICE) closed up 0.4 percent at $84.50 last week. Meanwhile, crude oil futures on the Multi Commodity Exchange (MCX) lost 3.3 percent to close at Rs 6,503.
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As the US Federal Reserve has hinted at raising key interest rates again, the dollar is strengthening and US bond yields are rising. But declines and setbacks in US fuel production over the past two days have highlighted the way forward. The Energy Information Administration (EIA) reported a 6.1-lakh-barrel production shortfall in the US for the week ending August 18, while it had expected a drop of up to 2.9-lakh barrels.
No significant change in fuel prices was reported in the country’s major cities today. Petrol price in Delhi city remains at Rs 96.72 per liter and diesel price remains at Rs 89.62. In Mumbai, petrol price is Rs 106.31 and diesel price is Rs 94.27. Petrol price in Kolkata is Rs 106.03 and diesel price is Rs 92.76. In Chennai, petrol price remains at Rs 102.63 and diesel at Rs 94.24.
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Meanwhile, petrol and diesel prices in Kerala remain the same on Sunday. In Thiruvananthapuram, the price of a liter of petrol remains at Rs 109.73 and diesel at Rs 98.53. Petrol price in Kochi remains unchanged at Rs 107.78 and diesel at Rs 96.70. In Kozhikode, petrol price was recorded at Rs 108.28 and diesel at Rs 97.20.
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