Will Petrol and Diesel Get Cheaper? Crude Oil Prices Crash 5% After US-Iran Talks

New Delhi: The sudden sharp fall in the prices of crude oil in the international market has changed the trend of the energy market. While on Monday the prices of crude oil had crossed 82 dollars per barrel, by the end of the trading session there was a big fall in it and the price came down to around 77 dollars per barrel. The increasing diplomatic talks between America and Iran are considered to be the main reason behind this change.

Why did the prices of crude oil suddenly fall?

According to experts, recent talks between US and Iranian officials have reduced market concerns to a great extent. Expectations of easing tensions between the two countries boosted investor confidence, putting pressure on crude oil prices. In the last 24 hours, crude oil has become cheaper by about 5 percent in the international market.

Has the new relief given to Iran affected the market?

Although Iran has not made any new commitments regarding its nuclear program, the US has provided relief for the sale of Iranian oil for a limited period. This has reduced the concerns regarding oil supply in the global market. Investors are hopeful that the pressure on the supply chain will ease and stability may return to the market.

What are the latest prices of crude oil in the international market?

Brent crude closed at around 77 dollars per barrel on Monday, while it had even reached 76 dollars during trading. At the same time, a big fall was also recorded in American WTI crude and its price remains around 74 dollars per barrel. Both the major benchmarks have seen a decline of 4 to 5 percent within a day.

Are there signs of improvement in global oil supply?

Market analysts believe that the supply situation may improve due to the resumption of oil exports from Iran and increased movement of tankers through the Strait of Hormuz. Apart from this, Iraq and other Gulf countries have also indicated to increase production, which may strengthen the global supply in the coming months.

Will there be relief in the prices of petrol and diesel?

The fall in crude oil prices may also affect the prices of petrol and diesel in India. Energy experts believe that if crude oil remains cheap then the costs of oil companies will reduce and the possibility of getting relief to consumers will increase. There have also been indications from the Petroleum Ministry that the benefits of cheap imported crude oil can be extended to the common people.

What are the latest prices of petrol and diesel in major cities of the country?

At present, petrol is being sold at Rs 102.12 and diesel at Rs 95.20 per liter in Delhi. At the same time, fuel prices in Mumbai, Kolkata and Chennai have remained stable for the last several days. Market experts believe that if global crude oil prices continue to soften, there may be some relief news regarding fuel prices in the coming times.