Brent crude prices, which has the highest weightage on Indian basket, was seen at $76.9 a barrel at one point. On the other hand, West Texas Intermediate (WTI) prices were seen at $70.94 a barrel. The Indian basket crude oil was seen at $71.6 a barrel on May 8. The U.S. is now asking the buyers to cut Iran’s exports again, giving a 180 days window.
However, experts are of the opinion that this will not be having a long-term impact as the Joint Comprehensive Plan of Action (JCPOA), may not be scrapped as it still has the backing of countries like the United Kingdom, France, Russia, China, Germany and the European Union. “European countries and China are still backing the deal. Though there will be a minor increase in prices, we expect it to minimize soon as Saudi Arabia is likely to increase its production,” said Subodh Kumar Jain, director of South Asia Gas Enterprises Pvt Ltd (SAGE), that is working on a planned under-sea gas pipeline between Iran and India.
Following the increase in crude oil prices, oil marketing companies had frozen the prices of petrol and diesel since April 23. IndianOil (IOC) chairman and managing director Sanjiv Singh told the media on Tuesday that the move was to avoid panic among consumers. He added that the company has decided to temporarily moderate retail prices by not passing the required increase to consumers as the international prices are not “supported by fundamentals.”