Diesel-petrol prices are projected to fall in the coming days, providing respite to ordinary people who are experiencing all-around inflation. Indeed, the price of crude oil has dropped sharply on the worldwide market due to concerns of a global economic downturn. Demand for crude oil is being impacted by the risk of recession. As a result, the price of crude oil plummeted to its lowest level in many months on Monday.
Brent oil futures LCOc1 lost 74 cents, or 0.80%, to $94.18 a barrel on Monday, according to Reuters. This is crude oil's lowest level since February 2022. Last week saw the greatest weekly drop in crude oil prices in more than two years. Crude oil has dropped by 13.7 percent in the previous week alone. Similarly, West Texas Intermediate crude CLc1 declined 67 cents today to $ 88.34 a barrel. Its price had dropped by 9.7 percent in the previous week.
China is the world's largest purchaser of crude oil. During July, China imported 8.79 million barrels of crude oil per day. Although this is higher than the four-month low of June, it is still 9.5% lower than a year ago. Due to low profits, China's refinery businesses are utilizing reserves instead of imports, which is affecting demand. The demand for crude oil has also suffered as a result of China's zero covid policy.
In light of the new circumstances, ANZ has altered its oil demand prediction for 2022 and 2023. ANZ now forecasts 3 lakh barrels per day in 2022 and 5 lakh barrels per day in 2023. According to the bank, a partial recovery in oil demand is projected in 2022, but even then, it will stay below pre-pandemic levels. Russia, on the other hand, is gaining an advantage. Even after sanctions, demand for Russian crude oil remains high.
In India, the price of diesel petrol has been unchanged for over two months. The price of fuel in Delhi is now constant at Rs 96.72 per liter. Similarly, the price of fuel in Mumbai is Rs 106.35, Rs 106.03 in Kolkata, and Rs 102.63 in Chennai.
Diesel prices are constant at Rs 89.62 per liter in Delhi, Rs 94.28 in Mumbai, Rs 92.76 in Kolkata, and Rs 94.24 in Chennai. The price of crude oil has dropped dramatically during the last two months. As a result, there is growing anticipation that domestic diesel-petrol prices would be reduced soon.
