Oil Market -Current trends

The important force of all the economies is said to be driven by one important component- “Oil.” An interesting fact, its derived products in turn tend to influence our daily life- which includes travel, food, heating, and so on. But in recent times world politics and the war situation have created a sense of havoc in the market. There is an intermittent change in terms of price, which seems to be keeping many of the economies of the globe.

Recent month’s trends

Though the Russian war with Ukraine is said to have set the tone for the disturbances in oil prices, the current scenario is much more challenging. With increasing tension in the Gaza-Israeli war, the Middle Eastern producers, are in a bullish mode. With reduced supplies from Saudi and Russia as the important producers, there is a whisper in the market that this might continue through the end of this year. This move potentially might see its influence on the prices of petroleum prices fluctuating. The United States of America recently lifted its sanctions on Venezuela and with their support to the oil distribution in the U.S. market. It can influence the pricing of oil in the domestic markets in the coming months. As of the current status code, the chances of the oil seeing higher prices are more likely. There is speculation that the prices are likely to go close to the range between $90-$98 dollars per barrel. It is more likely to be the case,

In the short term, the oil market is speculated to be in the price range of $80-$85 per barrel, as per the U.S Energy Information Administration.

India’s position

India’s market is said to have reacted very sharply and has seen a very volatile approach, by the investors. With the highly speculative nature of the war situation and the recent economic data from the United States and other prominent economies, the Indian investors have been really speculative. Though we are in tune with the festive season in the nation, fuel prices are still continuing to be at an all-time high and continued to be so for the past two years. The only way for India to see a reduction in prices is mainly by cutting down its excise duties on diesel and oil products. It would bring some respite to the Indian consumers. Indian producers have taken ample steps to enhance its storage and explored options to obtain the oil for its consumption. Only time would speak in terms of how it would translate in terms of reduction of the prices of fuel, cooking gas, and general consumption in the economy. It is in recent months we have seen a price cut for cooking gas, but there is still some hope to bring the petrol and diesel prices down.

Overall, the picture still remains speculative. Though many of the big firms state the price of oil, would continue to be higher, would mostly be the case. With tighter supply from major producers, it remains to see what the other members of OPEC, decide to do to continue the prices in the world -market.