Fuel price cut hopes rise as oil sinks to lowest since January
NEW DELHI: Benchmark Brent crude fell to its lowest since January on Monday, brightening the scope for a reduction in fuel prices as protests in China over tough Covid restrictions and the impending G-7 price cap on Russian oil from December 5 clouded demand outlook.
Brent slipped $2.6/barrel, or more than 3%, to $80.97. A lurking apprehension over another production cut by the Opec+ grouping of oil exporters, including Russia, contributed to the sharp fall. The grouping is scheduled to meet on December 4 on the current production limits.
Brent has been losing steam for three consecutive weeks now. As a result, the cost of ‘Indian Basket’ – or the mix of crude bought by Indian refiners – has dropped to $82/barrel from an average of $112.8 in March.
