The crude oil prices, in this case Brent crude prices, have crossed the USD 90 per barrel mark. Currently the rates stand at USD 91.02 (09:41 hrs.). This comes as the prices of the coveted commodity rose steadily over the span of this current week. The WTI or West Texas Intermediate on the other hand stands at USD 86.91, which has also seen a consistent rise over the past few weeks, especially this week.
This development comes exactly a month after the oil producing nation's union or cartel, as some refer to it, extended voluntary cuts to their collective output in the global markets.
The extension of the cuts on 3 March was an attempt in sticking to the alliance's commitment to tightening the market ahead of the upcoming Northern Hemisphere summer, which is typically a period of high oil demand.
Those cuts appear to be showing their impact now. Needless to say, this is not the only factor in place, the war in Ukraine and the uncertainty surrounding it, along with the extensive and ever expanding turbulence in the Middle East, thanks to Israel's brutal offensive in Gaza and the subsequent retaliation from forces like the Houthis in the Red Sea, have all, arguably chipped in to the brewing furnace of chaos and confusion.
PTI
This seemingly has had a ripple effect on the equity markets throughout the globe. This, as numbers of major American indices, namely Dow Jones, S&P 500 and Nasdaq tanked on Thursday's trade. The S&P 500 ended the day's trade at 5,147.21 losing 64.28 points or 1.23 per cent. The Dow Jones Industrial Average closed at 38,586.98 losing 530.16 points or 1.35 per cent. In addition, the tech-heavy Nasdaq also lost 228.38 points or 1.40 per cent to reach 16,049.08.
The Asian Indices, as though a relay race, took the red baton. Japan's Nikkei, Hong Kong's Hang Seng and Korea's KOSPI all started Friday's trade in Red. Following that, barely a few hours ago, the Indian Indices, Sensex and Nifty also started on a negative note.
Eventually beyond the markets, it is also about the common consumers, as this development will impact prices of petrol and diesel around the globe, including India. The prices of both items were being held, in what is now an election year.
It is election season in India. |
The petrol prices in Mumbai, as of 5 April, stand at Rs 104.21 a litre, with diesel at Rs 92.15. In the capital Delhi, the prices stand at Rs 94.72 for petrol and Rs 87.62 for diesel. Meanwhile, in Chennai, the price of petrol stood at Rs 100.75 and the rate for its substitute stood at 92.34.
In the coming days, the prices may see a jump, depending upon the volition of the corporations and ultimately the union government, which would not want a jump in prices at this stage, a fortnight before the elections.
