Sour grade crude oil from Oman and Dubai is known to have higher sulfur content, while Brent crude which has lower concentration of the same is considered sweet grade. This leads to a difference in their price per barrel, and a weighted average of the three translates to India's crude basket. With hopes of demand from China picking up in 2023, global crude prices have gone up, triggering a subsequent uptick in the rate of India's crude basket.
With this surge, the price of India's crude oil basket now stands close to $84.31 a barrel, which is the highest in two months.
AS the world's top oil importer, China drives 50 per cent of the global demand growth, which is positive despite uncertainty about how and when the Chinese economy will reopen. Further, the dollar's decline in comparison to major currencies has also supported a recovery in global oil prices.
