Brent crude prices fell sharply on Monday, slipping below the $90-per-barrel mark after reports suggested Pakistan is exploring ways to revive diplomatic talks between the US and Iran.
At last check, Brent crude was trading at $87.60 per barrel, down more than 4%.
The decline follows Friday's sell-off, when Reuters reported that Pakistan is attempting to facilitate renewed negotiations between Washington and Tehran, with backing from China. According to three sources cited by Reuters, Beijing supports the initiative as escalating tensions in the Gulf have begun affecting its strategic and economic interests.
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"The Chinese are unhappy because Iran's attacks on other Gulf states and the closure of the Strait of Hormuz are hitting their interests," a Pakistani government official told Reuters.
On Friday, Brent crude settled nearly 4% lower at $96.78 per barrel, while US West Texas Intermediate (WTI) crude declined 3% to $89.31 per barrel.
Despite the recent pullback, oil prices remain elevated after a strong rally last week. Brent gained nearly 10% over the week, while WTI advanced about 8%, as the intensifying conflict in the Middle East raised fears of supply disruptions.
For India, which imports more than 85% of its crude oil requirements, persistently high oil prices could put pressure on the economy. Elevated crude prices increase import costs and may fuel inflation, particularly as domestic fuel prices have already seen multiple increases in recent months.
Petrol Prices On July 27
- 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 July 27
- 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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