Brent crude prices edged higher on Wednesday, moving closer to the $90-a-barrel mark, as uncertainty over the reopening of the Strait of Hormuz continued to support oil prices. At last check, Brent crude futures were up 0.57% at $89.47 a barrel.
On Tuesday, Brent gained 1.36% to settle at $88.91 a barrel, while US West Texas Intermediate (WTI) futures rose 1.3% to close at $83.20 a barrel. Oil prices have climbed more than 6% this week as hopes of increased shipping traffic through the key waterway have faded.
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Oil prices rose after Mohsen Rezaei, Secretary of Iran's Supreme National Security Council, said the Strait of Hormuz would not reopen until Washington met Tehran's conditions. According to Reuters, Rezaei called for the US to unfreeze Iranian funds held overseas as a condition for reopening the strategic shipping route.
The market, however, continues to weigh mixed signals over the prospects of a US-Iran deal.
Pakistan Defence Minister Khawaja Asif told Bloomberg News that “things are shaping up again in favour of a peace arrangement or a deal”. Islamabad had mediated an interim US-Iran deal in June, which later collapsed and was followed by renewed fighting around Hormuz.
For India, which imports more than 85% of its crude oil requirements, a sustained rise in global oil prices could widen the import bill and add to inflationary pressures. Higher crude prices could also increase the likelihood of further domestic fuel price revisions.
Petrol Prices On August 12
Petrol price in Delhi: Rs 102.12/litre
Petrol price in Kolkata: Rs 113.43/litre
Petrol price in Mumbai: Rs 111.12/litre
Petrol price in Chennai: Rs 107.75/litre
Petrol price in Hyderabad: Rs 115.69/litre
Petrol price in Bengaluru: Rs 110.93/litre
Diesel Prices On August 12
Diesel price in Delhi: Rs 95.20/litre
Diesel price in Kolkata: Rs 99.78/litre
Diesel price in Mumbai: Rs 97.78 litre
Diesel price in Chennai: Rs 99.57/litre
Diesel price in Hyderabad: 103.82/litre
Diesel price in Bengaluru: 98.79/litre
What Drives Petrol, Diesel Prices?
Global crude prices remain the biggest determinant of retail fuel prices in India, but they are far from the only factor.
Domestic petrol and diesel rates are also influenced by central and state taxes, refining margins, freight and distribution costs, as well as movements in the rupee against the US dollar.
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