Crude oil down 30% as Saudi, Russia fail to reach deal over supply cuts

A standoff between Saudi Arabia and Russia over crude oil supply cuts saw international prices record one of their worst single-day dips in about three decades. Though this could help the Indian economy, which is facing a slowdown, to keep the subsidy bill under control, the fall could accentuate global distress.

At one point, Brent crude price was seen at a session low of $31 a barrel, down about 30 per cent, though it recovered later in the day to $35.60 (11:30 pm IST) a barrel. Even the West Texas Intermediate (WTI) price was down 23.18 per cent at $31.71 a barrel.

Indian consumers could gain from lower petroleum product prices, though a lot depends on whether the government makes use of the window to shore up its revenues and increases excise duty. Any duty hike would prevent the full benefit from accruing to consumers.