Global oil prices increased on the last trading day of the week following Iran’s skepticism about a near-term deal with the United States. Brent crude climbed 0.94% to $103.5 per barrel, and the US benchmark WTI rose 0.26% to $96.60 per barrel, rebounding from recent losses.
Iran’s Foreign Ministry spokesperson, as reported by the state-linked Tasnim news agency, stated that Tehran could not confirm proximity to an agreement with Washington. US Secretary of State Marco Rubio acknowledged some positive signals but emphasized that any Iranian move to impede traffic through the Strait of Hormuz would be a significant concern.
Recent statements from both sides have been conflicting, with markets initially reacting optimistically and then waiting for tangible developments. Traders are now cautious about factoring in diplomatic progress without concrete proof, according to analysts.
The physical oil market remains constrained, with decreasing inventories and higher fuel costs contributing to broader inflation worries. State-owned oil marketing companies raised petrol and diesel prices for the third time in about 10 days, with petrol prices up by Rs 0.87 per liter and diesel by Rs 0.91 per liter.
Authorities assured that there is no shortage of petrol, diesel, or LPG in the country, and steps are being taken against fuel stations not dispensing fuel as required. The government is closely monitoring petrol pump operations nationwide to ensure uninterrupted fuel supply to all outlets.
India’s heavy reliance on the Strait of Hormuz for energy imports poses a significant vulnerability, with about half of its crude and the majority of LPG and LNG imports passing through the strait. In response to the strait’s closure, India has shifted 70% of its crude imports to longer alternative sea routes via the Arctic and Baltic regions.
