On Monday, the price of crude oil rose to $139 per barrel as the United States and its allies considered prohibiting imports of oil from Russia, the world’s largest exporter of crude and refined products combined.
The delay in the Iranian nuclear deal, which could help lift sanctions against the Islamic Republic and reintroduce its oil to the global market, has also contributed to market jitters. After reaching a high of $139 per barrel in early trade, the highest since 2008, crude fell to around $130 per barrel, where it remained for most of the day.
Domestic fuel prices have remained unchanged for more than four months, despite a nearly $50 per barrel increase in crude oil prices during that time. State oil firms, which had held back from raising prices due to assembly elections in five states, can do so now that the final leg of polling has concluded on Monday. Companies may need to immediately raise petrol and diesel prices by around Rs10 per litre.
Bank of America analysts believe that cutting off Russian oil exports could push oil prices to $200 per barrel. On Sundays, US Secretary of State Antony Blinken stated that the US and its European allies are considering a ban on Russian oil imports.