Saudi to ship oil as promised but pump prices to stay buoyed


Saudi to ship oil as promised but pump prices to stay buoyed

Saudi Arabia has assured it will ship the committed volumes of oil and expects to restore normal production in 10 days or so, easing New Delhi’s anxiety over a possible shortfall. But domestic fuel prices will be under pressure as the global crude market remains edgy over the heightened geopolitical tension in the Persian Gulf region.

The assurance from Riyadh came on Thursday during a telephonic conversation between oil minister Dharmendra Pradhan and his Saudi counterpart, Prince Abdulaziz bin Salman. The Saudi assurance was backed up by a visiting International Energy Agency (IEA) team, which said there was enough oil to keep the world supplied and saw Saudi production normalising “quickly”.

The Saudi oil minister’s assurance takes care of the supply side but market volatility is likely to keep pump prices buoyed. “Oil prices were clearly dominated by demand before the attack. Read More

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