Oil at 6 month low but too early to hope for fuel price cut
NEW DELHI: Sliding oil prices have sharply reduced the losses of state-run fuel retailers selling petrol and diesel at rates frozen since May 22 but it is too early to expect a reduction in pump prices.
On Wednesday, benchmark Brent crude slipped to six-month low of $91.51 a barrel but later recovered to $94 on higher-than-expected drawdown of US crude inventories, indicating strong export demand.
Oil prices have been under pressure since last month as growing fears over recession hitting demand outweighed concerns over supply constraints. Simultaneously, prices of refined products also softened as more reefing capacity came back on stream in the US.
