Price Movement
Oil prices across major benchmarks:
- Brent Crude: USD 70.20/barrel (-2.1%)
- WTI Crude: USD 67.50/barrel (-2.3%)
- MCX Crude: Rs. 5,650/barrel (-1.8%)
Demand Outlook
Global oil demand growth forecasts have been revised downward by major agencies. China’s slower-than-expected economic recovery and mild winter in Europe are weighing on consumption.
OPEC Plus Production
OPEC plus has signaled potential production increases in 2026, adding to supply concerns. Recent compliance data shows some members exceeding their quotas.
US Inventory Data
US crude inventories rose for the third consecutive week, indicating softer demand. Gasoline and distillate stocks also accumulated.
Impact on Indian Markets
Lower crude prices are positive for oil marketing companies and the current account deficit. OMC stocks rallied on expectations of improved marketing margins.
Currency Effect
For India, crude oil priced in rupees has fallen even more sharply due to the rupee’s appreciation against the dollar.
Fuel Price Outlook
Analysts suggest Indian fuel prices could see a revision if crude prices remain at current levels for an extended period.
