Crude Oil Price Surge: Will Petrol And Diesel Prices Rise In India?

Crude oil prices have surged again, with Brent and WTI hovering between $102 and $110 per barrel amid continued tensions in West Asia. Oil prices had cooled in recent months, but the latest spike is once again raising concerns for India. The Saudi pipeline shutdown, tensions around the Strait of Hormuz and stalled diplomacy involving Gulf states, Iran, the US and Israel are among the key factors driving crude higher. For India’s oil marketing companies, higher crude prices mean rising under-recoveries. Investors will also need to watch crack spreads, which reflect the difference between production costs and retail market prices. With crude back above $100, the key question is what this means for OMCs and fuel prices.