As demand grows across Asia, India raises the price of petrol and diesel

 

Indian oil price hike

Indian oil companies raised the price of petrol and diesel substantially in proportion to rising crude oil prices and consumer demand, as economic activities are coming back to life.

The production cuts by the OPEC+ members, the draw in US inventories and the steady demand in Asia eclipsed the effect of Coronavirus in Asia.

The rise in oil price in India will be a political football soon as the opposition parties lost no time in accusing government of ‘opportunism’; they are up in  arms against the move.

On global front, President Trump’s move to let an orderly transition to the next administration on January 20, was encouraging news after all for commodity markets in general and oil markets in particular.

His determination to bring Arab countries closer to Israel, leaving behind decades of mutual animosities, did bring in relative peace to the region.

Although the Sunni Muslim nations are at loggerheads with the regional power, Iran, the threat of escalating tension in the region is on the wane.

If the new US administration makes peace with Iran and if the latter is allowed to sell its oil without hindrance, the flow of oil from the Middle East will accelerate substantially.

This may be the scenario that the Saudis have been worrying about, before stubbornly refusing to increase the production.  

 

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