New Delhi: Iran’s attack on Israel is expected to send global crude oil prices higher as war premium gets built in but retail fuel prices in India will likely stay unchanged due to general elections starting later this week, industry executives said.
Brent, the international crude benchmark, has sprinted to $90 per barrel from $80 in just about a month on escalating tensions between Iran and Israel. “A war premium may quickly show up in oil prices in the paper market. Heightened tension in oil supply zone or main oil transit zones may also cause increases in crude oil transport and insurance costs,” said Mukesh Surana, CEO of Ratnagiri Refinery & Petrochemicals Ltd. In oil industry parlance, paper market refers to a financial marketplace where future oil delivery contracts are traded.
