Even though there has been a slight increase of less than one percent in the prices of crude oil in the international market on the last trading day of the week, there has been a decline of about 8 percent in the prices of crude oil in a week. Where Brent crude of Gulf countries closed with a decline of less than one percent at $ 80.57 per barrel. At the same time, there was an increase of about 1.25 percent in the price of American crude and the price has come down to $ 77.54 per barrel.
In fact, due to the agreement on ceasefire between Israel and Hezbollah, there has been a big fall in the prices of crude oil in the week. Also the deal between Iran and US is also a big reason. In the coming days, if there remains peace in the world, especially in the Middle East, and if Iran’s oil comes into the market, then further decline in crude oil prices may be seen.
Now the biggest question is whether there will be a decline in the prices of crude oil in India. In the month of May, due to the rise in crude oil prices, the prices of petrol and diesel were increased by 7 to 8 percent. Let us also tell you at what level the prices of crude oil are in the international market. Also, the prices of petrol and diesel are being seen in the four major metros of the country.
crude oil prices
On Friday, the last trading day of the week, there was a slight increase in the prices of crude oil in the international market. Brent crude closed at $ 80.57 per barrel with a rise of 90 percent. By the way, there has been a decline of 8 percent in the price of Brent last week. After the market closed on June 12, the price of crude oil was $ 87.33 per barrel. Since then till now it has seen a fall of $ 6.76 per barrel.
Whereas if we talk about American crude, a decline of 1.23 percent was seen on Friday and the price closed at $ 77.54 per barrel. However, a decline of 8.65 percent has been seen in WTI in a week. On June 12, the price of American oil was $ 84.88 per barrel. Since then till now it has seen a decline of $ 7.34 per barrel.
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Hezbollah and Israel ceasefire
Hezbollah and Israel are ready for ceasefire. This was the reason why Gulf producers were preparing to increase exports after the agreement on Friday. At least four tankers loaded with crude oil, oil products and LPG entered the Strait of Hormuz on Friday en route to Iraqi Gulf ports, according to MarineTraffic data. However, Iran has indicated to keep tight control on shipping.
State TV said that ships will have to move only in coordination with the Revolutionary Guards Navy. In an unpublished advisory issued to the maritime industry over the past 24 hours, the Strait Authority said no ships are allowed to pass through the Strait of Hormuz without a valid passage permit issued by PGSA, Reuters reports.
8 percent decline in a week
Rory Johnston, founder of the ‘Commodity Context’ newsletter, said oil prices rose on Friday as concerns grew over Iran’s terms of use of the strait. Johnston said that the market was expecting a deal and its easy implementation, but so far that does not seem to be happening. Despite gains on Friday, the price of Brent crude fell by about 8 percent on a week-on-week basis.
This decline shows a major reduction in supply-related concerns after the US-Iran deal to end the war. Phil Flynn, senior analyst at Price Futures Group, said that although (oil prices) have not yet reached the level where they were before the war started, it seems that we are moving in that direction.
He said that more supplies are expected to arrive in the coming days. Flynn further said that the gathering of ships could be removed faster than some people think and if there is cooperation between Iran and the United States, this process could proceed much faster.
in.investing.com/commodities/crude-oil-historical-data
Clearing the way for 85 million barrels of oil
Iran’s Foreign Ministry said on Friday that a planned meeting between Iranian and US officials in Switzerland on Friday has been postponed and arrangements are being made for talks in the coming days. The ministry said that the meeting is no longer necessary as a Memorandum of Understanding (MoU) has already been digitally signed between the two sides to end the war.
Experts hope that with this deal, more than 85 million (85 million) barrels of oil stuck in the Gulf of the Middle East will be able to reach the global market. This agreement also includes the removal of US sanctions on Iranian oil, which will further increase the supply.
Crude oil will reach $60
About 20% of the world’s oil and LNG supply passes through the Strait of Hormuz, but it may take several months for supply and production to return to normal after the US-Iran deal. Citi said that according to its ‘base case’ (which has a probability of 60 per cent), oil flows will return to normal conditions, there will be a situation of surplus (excess supply) in the oil market and prices will fall over the next 6 to 12 months to around $60 to $65 per barrel by the first quarter of 2027.
Commerzbank said oil supplies would gradually improve, so it cut its Brent crude price forecast for the end of the year to $80 a barrel from $85, and also expected prices to remain above pre-war levels for most of the coming year.
Oil Minister Basim Mohammed said Iraq’s oil fields are ready to resume production and production will gradually normalize and return to previous levels. On the demand front, global demand will increase from 105.1 million barrels per day in 2025 to 113.3 million barrels per day in 2030, OPEC said in its ‘2026 World Oil Outlook’.
Will petrol and diesel become cheaper in India?
Now the biggest question is whether the prices of petrol and diesel will fall in India. There is a reason for that too. In the month of June, there has been a decline of more than 15 percent in the prices of crude oil since June 1st. This means that there has been a decline of $ 14.41 per barrel in the price of Brent crude. Whereas in the month of May, there was an increase of 7 to 8 percent in the prices of petrol and diesel in India. The last time the prices of petrol and diesel were increased on May 25.
According to experts, there has been a decline in the prices of crude oil, but the losses of the petroleum companies have not been compensated yet. Due to increase in the price of crude oil, petroleum companies were incurring a loss of Rs 1000 to 1500 crore every day. It was estimated that this loss would not be reduced until the price of crude oil fell below $80 per barrel. With crude oil prices falling to this level, petroleum companies will reach the level of no profit and no loss. Petroleum companies are expected to benefit from crude oil reaching the level of $75 per barrel.
What are the prices of petrol and diesel?
However, there has been no change in the prices of petrol and diesel in the four metros of the country. According to IOCL data, the price of petrol in the country’s capital Delhi is Rs 102.12 per liter and diesel is Rs 95.20 per liter. Whereas in Kolkata, the price of petrol is Rs 113.51 and the price of diesel is Rs 99.02 per liter. In Mumbai on Saturday, the price of petrol was seen at Rs 111.21 and diesel at Rs 97.83 per liter. Apart from this, the price of petrol in Chennai has come down to Rs 107.77 and diesel to Rs 99.55 per liter.
