Crude Oil Prices Are Highest In 10 Years As Rupee Hits A Lifetime Low: How It Will Affect Us
Oil prices surge above $130 their highest since 2008 on Monday after a US and European ban on Russian oil imports risk and delays in Iranian talks fuelled tight supply fears. Brent rose $1167 or 99% to $12978 a barrel by 6:50 pm EST 2350 GMT while US West Texas Intermediate WTI crude rose $1083 or 94%. to $12651 putting both contracts on track for their highest daily percentage gains since May 2020.
Oil prices soared to their highest since 2008 due to delays in the potential return of Iranian crude to global markets and as the United States and European allies consider banning imports of Russian oil.
Oil prices surge above $130 their highest since 2008 on Monday, after a US and European ban on Russian oil imports risk and delays in Iranian talks fuelled tight supply fears.
Talks to revive Iran's 2015 nuclear deal with world powers were mired in uncertainty on Sunday following Russia's demands for a US guarantee that the sanctions it faces over the Ukraine conflict will not hurt its trade with Tehran. China has also raised new demands, according to sources.
In response to Russia's demands, US Secretary of State Antony Blinken said on Sunday that the sanctions imposed on Russia over its Ukraine invasion have nothing to do with a potential nuclear deal with Iran.
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The United States and European allies, meanwhile, are exploring banning imports of Russian oil, Blinken said on Sunday, and the White House coordinated with key Congressional committees moving forward with their own ban.
Brent rose $11.67, or 9.9%, to $129.78 a barrel by 6:50 p.m. EST (2350 GMT), while U.S. West Texas Intermediate (WTI) crude rose $10.83, or 9.4%, to $126.51, putting both contracts on track for their highest daily percentage gains since May 2020.
In India, the price rise could mean a surge in the price of edible oil and eat into disposable incomes of consumers, even as the backbone of the economy is yet to fully start spending after the pandemic.
Speculations are rife on social media that fuel prices will witness a hike soon after the elections are over in poll-bound states.
Crude oil has reached $117 per barrel.
¡ª Drunk Journalist (@drunkJournalist) March 3, 2022
The last time India hike domestic fuel was when the crude was around $75.
India govt can still provide the same price without fuel hike by reducing the excise duty.
Crude Oil prices are hovering near $93 per barrel today, the highest since 2013.
¡ª Nick Turiim (@NTuriim) March 2, 2022
Thanks to Election, there is no fuel price hike in India. YET.
Post election, don't be surprised when petrol goes as high as ?150 per litre.
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"With state elections getting over next week, we expect daily fuel price hikes to restart across both gasoline and diesel," JP Morgan said in a report
¡ª Sadiq (@Sadiqrz2020) March 7, 2022
India To Face Record Fuel Price Hike? Report Suggests Rs 12 Increase In Petrol, Diesel Price
Rupee hits a lifetime low
The energy-sensitive rupee hit a lifetime low in early trading on Monday as a sharp surge in global crude oil prices to above $130 threatened to push up imported inflation and widen the country's trade and current account deficits.
The rupee was trading nearly 1 per cent weaker at 76.92 per dollar after touching 76.96, its weakest level ever. On Friday, the currency fell to close at 76.17 against the US dollar, its lowest closing level since December 15, 2021.
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The rupee has declined against the US dollar as intensifying geopolitical risks due to the Russia-Ukraine conflict pushed investors to the greenback's safe-haven appeal.
The yen and the dollar were trading stronger as investors moved towards safe-haven assets.
Forex traders said escalating tensions between Russia and Ukraine kept crude oil prices elevated and heightened worries about domestic inflation and broader trade deficits.
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