Saudi Arabia has stated that Russia is an integral part of the OPEC Plus community. The statement added that OPAC Plus was not a coalition for political interests and was formed solely for market management. Meanwhile, Russia has announced its readiness to continue its oil production agreements with OPEC Plus countries. Russia’s response is that the agreement is officially due to expire this year. The OPEC Plus consortium’s target of 2.695 million barrels per day was not achieved. Because of the war crisis.
This month, the Fed announced the largest rate hike since 1994. An increase of 75 basis points was made. Crude oil prices have fallen less than 1 percent since the decision. Following this, European banks also raised interest rates. Banks in England, Argentina and Switzerland have also raised interest rates.
The United States has decided to drastically increase crude oil imports. Imports in May were at a two-year high. The decision was taken to increase imports as per the market demand. The price of natural gas in the US is rising after lower levels. Rising temperatures in the American climate will increase demand for air conditioners, which in turn will increase the demand for electricity and natural gas.
The widening trade deficit is also a cause for concern. Crude oil prices have fallen slightly in recent days. The market is going through days of rising inflation and retail-wholesale inflation, which worries investors.
The energy sector has a higher valuation than other sectors in the international market. Last April, it was reported that Europe had imported a record amount of LNG. The supply of gas through pipelines was not sufficient to meet the needs of Europe.
The Russian occupation has changed the international trade in natural gas. It is estimated that US liquefied natural gas exports will increase in the long run. European markets are in a hurry to find a replacement for Russian natural gas. This opens up great opportunities for American companies.
Ahead of the summer season, prices of jet fuels are rising in the United States. The United States continues to take immediate steps to reduce prices, including for gasoline. As part of this, there were reports yesterday that President Joe Biden was considering increasing the productivity of oil refineries. At present, the maximum production capacity of US oil refineries is 94.2 percent. It produces about 10 million barrels of gasoline a day. Increasing productivity is a complex process that must be achieved over a long period of time. It also requires large capital investment. No new oil refinery has been established in the United States since the 1970s.
Meanwhile, more crude oil from Iran is set to enter the international market. It is hoped that this will alleviate some of the current crisis. Efforts are also underway to reopen the UK’s largest natural gas storage site, which closed five years ago for financial reasons.
Crude oil prices
Crude oil prices rise in international markets At the Interbank Foreign Exchange (Forex) market, the rupee depreciated by 113.1 a dollar. If the value remains stable above 77 for a few days, the pressure is increasing. At present, the rupee is trading at 78.25 against the dollar.
Union Finance Minister Nirmala Sitharaman announced the concessions on May 21 to curb soaring inflation. With the intervention of excise duty, petrol was reduced by Rs 8 per liter and diesel by Rs 6 per liter. With this, it was estimated that petrol would cost Rs 9.50 per liter and diesel Rs 7 per liter. But after the Center, the state government also reduced taxes. Petrol tax has been reduced by Rs 2.41 and diesel by Rs 1.36. As a result, petrol price in the state has come down by Rs 10.52 per liter and diesel by Rs 7.40 per liter.
Fuel prices in major cities
In New Delhi, the revised price for a liter of petrol is Rs 96.72. 89.62 per liter of diesel. In Mumbai, a liter of petrol costs Rs 111.35 and diesel Rs 97.28. In Thiruvananthapuram, a liter of petrol costs Rs 106.74 and a liter of diesel Rs 96.58. In Kochi, petrol is priced at Rs 104.62 per liter. Diesel is priced at Rs 92.63 per liter. In Kozhikode, a liter of petrol today costs Rs 104.92 and diesel Rs 94.89.
| City | Petrol (Rs.) | Diesel (Rs.) |
| Thiruvananthapuram | 106.74 | 96.58 |
| Cochin | 104.62 | 92.63 |
| Kozhikode | 104.92 | 94.89 |
| New Delhi | 96.72 | 89.62 |
| Mumbai | 111.35 | 97.28 |