As Oil prices slip, India Basket price reaches $48.17

Crude oil continues its dismal run as it declined further in the international market due to slowdown in Asian markets. On Tuesday owing to expected decline in demand of refinery consumption in US in the coming days, US crude future CLC dropped by 3 cents to touch $41.84/ bbl. Due to concern of further weakening in Asians economies like China and Japan and further raise in production, Brent futures touched $ 48.61 a barrel, down 13 cents. Though this is quite high from the yearly low of $45.19 but US crude future is almost at the lowest point of the year.
The future of Oil price seems bleak as two of the Asia’s biggest economies experiencing a sharp slowdown with Chinese economy contracting at more than expected rate. On the other hand the US economy also is experiencing decline in the demand post September, further putting pressure on the crude. Experts feel that if this scenario continues then Crude may touch $35 /bbl in the near future.

Riding high on the soft international prices of crude, international crude oil price of Indian Basket remained at $ 48.17 per barrel as on August 17. This was lower than the price of $ 48.85 per bbl on previous publishing day of August 14, further propelling the hope of another petrol and diesel price cut at the end of this month. In rupee terms, the price of Indian Basket decreased to Rs 3141.65 per bbl as compared to Rs 3181.11 per bbl on August 14. The only concern for Indian Oil companies is the declining rupee owing to devaluation of Chinese Yuan. The Rupee closed weaker at Rs 65.22 per $ on August 17 as against Rs 65.12 per $ on August 14. Interestingly, crude prices for the fortnight ending August 16 remained at $50.68/bbl or Rs 3243.52/bbl in rupee terms. It is important to note that riding high on low crude price, biggest OMC of the country IOC has put a fabulous show and earned a quarterly profit of $ 1 billion in the first quarter.