Fuel retailers in catch-22 situation, delay price cut as market tightens
NEW DELHI: State-run fuel retailers are delaying a price cut as oil prices harden towards $80/barrel as the narrative of the market getting tighter gains momentum amid demand outlook turning bullish to coincide with supply cuts from Saudi Arabia and Russia.
Oil prices posted their third straight weekly gains last week, the first since April, with global benchmark Brent hovering above $81/barrel on Friday. The market drew support from the International Energy Agency and OPEC on Thursday predicting in the second half a rebound in demand, particularly from China. Hopes of a pause in US interest rate hikes on cooling inflation data as well as disruption in supply from Egypt and Nigeria added to the sentiment.
