Escalating tension in the Middle East is driving up oil prices, a huge import cost for many economies, putting more strain on global growth already hurt by the trade war being waged by U.S. President Donald Trump and weakening consumer confidence.
Clad in a poly cotton Indian Oil petrol pump uniform, 33-year-old Ramesh (name changed) welcomes the motorists with a smile to the newly opened outlet next to the Puzhal Central Prison I. For him, working at the fuel filling station, is more than a job.
Indian Oil plans to set up a diesel exhaust fluid plant in Bengal at an investment of around Rs 150 crore to support the introduction of Bharat Stage-VI compliant fuel from April 1, 2020. The investment is part of the company’s expansion plans in the state across businesses.
Oil rose about 1% on Friday after attacks on two oil tankers in the Gulf of Oman this week raised concerns about potential supply disruptions, but prices remained on track for a weekly loss on fears that trade disputes will dent global oil demand.
Global oil supplies will increase far more than demand next year with the start of a host of new projects, putting further pressure on the OPEC cartel, the International Energy Agency said.
Fuel prices fell on Friday for the second consecutive day, as petrol slipped by 17 paise per litre and diesel by 16 p/l, across major cities of the country. In Delhi, petrol retailed at Rs 70.18 per litre, as against yesterday’s Rs 70.35, while diesel costs Rs 64.17, against Thursday’s 64.33 per litre.
The International Energy Agency (IEA) slashed its estimate for global oil demand growth for the second consecutive month on Friday, citing intensifying trade concerns amid fears of a global recession.
Crude oil prices Friday fell 0.19 per cent to Rs 3,636 per barrel as speculators indulged in reducing holdings amid a weakening trend overseas. On the Multi Commodity Exchange, crude for delivery in June contracts fell by Rs 7
The Directorate General of Foreign Trade (DGFT), the government body responsible for regulation and promotion of foreign trade, last month declared bio-fuel as a restricted commodity, the import of which would require a license from DGFT.
Oil fell on Friday after sharp gains in the previous session when prices were boosted after attacks on two oil tankers in the Gulf of Oman stoked concerns of reduced crude flows through one of the world’s key shipping routes.