Crude oil price near $ 120 per barrel, fear of sharp rise in petrol diesel

According to JP Morgan, oil companies are incurring significant losses on petrol diesel sales and companies need to increase retail prices by Rs 9 per liter to get profit.

Crude oil at new record level

crude oil prices (crude oil price) New record level has been reached. Russia Ukraine crisis ,Russia Ukraine CrisisDue to the widening gap between demand and supply, there has been a sharp jump in prices. Due to the ongoing war in Ukraine, crude oil prices have reached near the level of $ 120 per barrel. Which is the highest level of oil prices in more than 9 years. Due to this jump in crude oil prices, petrol and diesel (Petrol and Diesel) in the countryPetrol Diesel PriceThere is a possibility of a sharp increase in prices. The retail prices of oil in the country have remained stable for the last 4 months.

Where did crude oil prices reach?

Brent crude for May contract rose today to reach the level of $ 119.84 per barrel. In the previous trading session, Brent had closed at $ 112.93 per barrel. That is, in today’s session, Brent crude has become expensive by about $ 7 per barrel. At the same time, WTI crude for April contract crossed $ 115 per barrel. A month ago, Brett crude was at the level of $ 91 per barrel, while before the start of the war, crude oil was at the level of $ 95 per barrel, that is, with the beginning of the war, crude oil prices will see an increase of about $ 25 per barrel. has received,

Why did the prices rise

The main reason for the rise in prices is due to the supply of crude oil being less than the demand. Due to the Russia-Ukraine crisis and sanctions imposed on Russia, there has been an impact on the supply of crude oil in the market. At the same time, the IEA countries decided to release 60 million barrels of oil from their reserves, which has been less than the market estimates. At the same time, no positive decision has been taken by OPEC+ countries to increase production. Due to which there is a possibility of a bad effect on the supply, due to which there is a jump in the prices.

Petrol and diesel prices will increase

At the same time, there has been an apprehension that the retail prices of oil in the domestic markets will see an increase from next week. In a report by JP Morgan, it has been said that with oil reaching near $100 per barrel, oil companies are incurring significant losses and oil companies can increase oil prices to compensate for the loss. Brokerage company J.P. Morgan said in a report, “The state assembly elections will be over by next week. It is estimated that after this the fuel rates may increase on a daily basis.” Public sector oil companies Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum have to bear a loss of Rs 5.7 per liter on petrol and diesel due to the rise in crude oil prices. Used to be. According to JP Morgan, oil marketing companies need to increase retail prices by Rs 9 per liter or 10 per cent to get normal marketing profit. There has been no change in the fuel prices domestically for 118 days in a row.

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