The price of a basket of Indian crude oil fell on Monday to $ 99.17 a barrel at an exchange rate of Rs 76.74 per dollar, according to the latest report released on Tuesday.
Today, the latest report from the Petroleum Planning and Analysis Cell of the Ministry of Petroleum showed the price of Indian crude oil basket falling below the $ 100 per barrel level will be the third time in the last two weeks.
In fact, the price of a basket of Indian crude was $ 97.82 a barrel on April 11 and $ 99.86 a barrel on April 12, 2022.
That follows the weakness of the global oil market, with its international benchmark traded in London, Brent, down more than 4 percent on Monday after falling 1.5 percent on Friday and marking a 4.5 percent loss for last week.
The global oil market has gone through a wild cycle since Russia invaded Ukraine on Feb. 24, but Brent and U.S. futures, for the most part, traded above $ 100 a barrel.
Still, benchmark crude oil prices have weakened in recent trading weeks following demand concerns driven by a recent surge in the COVID-19 case in China and the following tight sanctions imposed there.
If the weak trend continues, April will be the first month of the year in the negative for Brent. However, the bias still tends to ascend on supply disruptions due to Western sanctions on Russia due to its attacks on Ukraine.
Still, the latest fall in crude oil prices is welcome news for India as it relies on imports for 85 per cent of its oil needs.
But the expectation that the least resistance route to global oil hikes will eventually push Indian crude oil prices higher and, in turn, push state retailers in India to raise fuel rates, which have not changed for 20 consecutive days now.