Petrol & Diesel Prices Today — July 20: Fuel rates in Delhi, Mumbai, Bengaluru, Kolkata amid tight oil market | Today’s news
Petrol and Diesel Prices Today, July 19: Retail fuel prices in India remained steady on Monday despite increased energy prices due to renewed hostilities between the United States and Iran. Benchmark Brent crude rose sharply last week amid geopolitical tensions in West Asia, erasing a roughly 30% drop in the second quarter.
The US-Iran war, now in its fifth month, is once again driving up energy prices and intensifying volatility that may give way to hawkish federal policy. Although soft US economic data suggested a rate hike was unlikely in the near term, the recent escalation of hostilities raised concerns that the Fed may eventually tighten monetary policy.
Retail fuel prices in India are mainly determined by state-owned oil marketing companies (OMCs). Despite significant volatility in global energy prices, fuel prices in India continue to be in line with the last major price revision on 25 May.
Brent crude oil price today
Brent crude rose to its highest level since mid-June, climbing nearly 4% to trade above $90 a barrel, Bloomberg reported.
The latest update on the US-Iran war
As tit-for-tat attacks have spread beyond strictly military targets to include bridges, utilities and port facilities, Iran announced the collapse of the US-Iran truce, saying on Saturday it would no longer abide by the terms of the interim peace deal. This escalation has not only stopped the movement of oil cargo through the Strait of Hormuz, but also raises the possibility of deepening the disruption of crucial energy flows through the narrow waterway.
Inserting a new risk into the market and signaling a possible escalation of US strikes, the US has increased its military presence in West Asia by sending more warplanes, the New York Times reported. The aircraft included F-16 and F-35 fighter jets, in addition to another aerial refueling aircraft. Iran’s Foreign Minister Abbas Araghchi said on Sunday that some demands related to the country’s nuclear efforts may remain “intractable”.
US forces struck Iran for the ninth consecutive day early Monday, and explosions were heard in several Iranian cities, including Tabriz, Chabahar, Konarak, Bandar Mahshahr and Bandar Imam Khomeini, Iran’s semi-official Tasnim news agency reported. In the renewed fighting, the death toll of US military service rose to three. Referring to the new wave of strikes on Iran, US President Donald Trump said: “Tonight we hit it very hard again and we did it in honor” of the personnel killed, Bloomberg reported.
Experts point to a tightening of the oil market
Group AG commodity analyst Giovanni Staunovo said: “The oil market is tightening again, which is likely to keep oil prices supported.” He added: “Repeated attacks on vessels crossing the Strait of Hormuz have led to a decline in tankers leaving the Persian Gulf” and “attacks on energy infrastructure is something that is likely to worry oil market participants.”
