NEW DELHI: After staying above $100 per barrel for almost three weeks, the crude oil prices in the international market fell below $100 per barrel on Tuesday. The Brent Crude - the global benchmark for prices was trading at $98.40 per barrel while WTI was trading at $94.10 per barrel. The crude price in the international market has been on rise ever since Russia started its military operations in Ukraine. It had shot up over $100 a barrel, and reached even $139, a near 14-year high.
On March 7, Brent hit $139.13 a barrel, the highest since 2008. But in the past few days, the price of oil has come down due to factors, including resurgence of Covid 19 cases in China, the world’s biggest crude importer, and ceasefire talks between Ukraine and Russia.
The drop of crude prices in the international market is a big relief for India as it imports 85% of its oil demand. Experts believe that the surged crude price may have impacted India’s import bills and foreign exchange reserves and exchange rate. They have said if the government hadn’t passed this on the customer, it would have hurt its tax revenue. A study by State Bank of India’s (SBI) economic wing noted that given the increase in the price of crude oil in the international market; diesel and petrol prices should have been higher by `7-14 in India.