Crude oil prices have been boosted by concerns of looming US sanctions on Iran.
Global crude oil prices remained at an elevated level today with global benchmark Brent crude trading near 80 dollars a barrel - the highest since 2014.
The latest trigger that is supporting crude oil prices is fears that Venezuela's oil out could fall further.
Traders are also weighing the possibility of additional US sanctions on the country.
Back in India, which imports bulk of its oil requirement, petrol and diesel prices ruled at record highs in the wake of rising global oil prices.
Petrol is being sold at Rs.
76.87 per litre in Delhi, Rs.
79.53 per litre in Kolkata, Rs.
84.7 per litre in Mumbai and Rs.
79.79 per litre in Chennai, according to Indian Oil.
Diesel retailed at Rs.
68.08 per litre in Delhi, Rs.
70.63 per litre in Kolkata, Rs.
72.48 per litre in Mumbai and Rs.
71.87 per litre in Chennai.1) Crude oil prices have gained nearly 50 per cent in the last 12 months alone, reflecting tight supply and concern over geopolitics.
Prices have been supported by voluntary supply cuts led by the Organization of the Petroleum Exporting Countries or OPEC.
The block of major oil producing countries and its ally Russia have cut their output since January 2017 to help reduce excessive global stockpiles.
Despite global prices rallying to $80 a barrel and concerns voiced by major oil consuming nations over rising prices, OPEC has said that it sees no need to ease output restrictions.2) Oil inventories in the world's richest nations have now fallen 1 million barrels below the five-year average, the level targeted by the Organization of the Petroleum Exporting Countries and its partners, as the group restrains crude output for a second year.3) In recent weeks, crude oil prices have been boosted by concerns of looming US sanctions on Iran that could curb the Middle East country's crude exports.
Earlier this month, the US announced that it would withdraw from the 2015 Iran nuclear arms treaty and renew sanctions against the country.
Iran pumps about 4 per cent of the world's oil.4) Traders also fear that Venezuela's crude output could drop further following a disputed presidential election and potential US sanctions on the OPEC-member.
Curbs on Venezuela's financing or logistics could further depress the country's crude output.
"(Oil inventory) is tight and the US will probably tighten sanctions on Venezuela which will make the Venezuela situation worse and which means we can expect continued falling Venezuelan production," said Tony Nunan, oil risk manager at Mitsubishi Corp in Tokyo.5) A key report released last week showed US crude and gasoline stocks fell more than expected.
US crude inventories fell by 1.4 million barrels in the week to May 11, compared with analyst expectations for a 763,000 barrel decrease.(With Agency Inputs)