Despite US President Donald Trump’s decision not to bomb Iran in spite of the downing of a US drone, the crude prices are steadily rising. The momentum of the upward swing of the Brent that has gained about 30 per cent since the beginning of 2019 may carry it towards $100 per barrel if there is no de-escalation in the Middle East.
The continuing attacks on Saudi Arabian oil installations, airports, and tankers in the Gulf of Oman are keeping the region tense. Iran that lies to the north of the Strait of Hormuz has a chokehold on the passage through which about 21 per cent of the total global consumption of liquid petroleum products and 30 per cent of liquefied natural gas pass. Its vulnerability is exacerbated by the fact that it is as narrow as 30km at some points.
Brent hit a recent high of $64.97 on Friday and despite a slight pullback in early trade on Monday, it was expected to head up. The Indian basket hit $63.19, a rise of about 2.68 per cent. Petrol price in Bengaluru city rose to Rs 75.20 and diesel Rs 66.85 on Monday. Read More