Iraq Takes Some Of The Heat Off

Domestic / Energy

The recent decision of the Iraqi government to destroy some of its weapons of mass destruction have not only thinned war clouds over West Asia but has also softened the international prices of crude oil slightly.

The assertion of the Organisation of Petroleum Exporting Countries (OPEC) to free its member-countries of quota restrictions in case of a war, has also helped in the price heading south.

With the increase of Rs 1.50 a litre in the retail prices of petrol and diesel, Indian consumer can be rest assured that the next hike in the prices of the two auto fuels may not come for some time now.

It is now known that the profits of all the state-owned oil companies have registered handsome gains in profits after dismantling of administered pricing mechanism on April 1, 2002.

However, any move by these companies to further increase petrol and diesel prices is expected to meet with resistance not only from the consumer but also from the government itself.

The international benchmark Brent crude, which was ruling at $ 33.51 a barrel on February 26, moved up to $ 34.36 a barrel on February 28, only to marginally decline to $ 34.32 a barrel on March 4. The February 28 price of Brent was the highest this fiscal.

Kerosene (Singapore), which was being quoted at $ 40.40 a barrel on February 26, went up to $ 40.43 a barrel on February 28, and moved down to $ 39.90 a barrel on March 4.

Similarly, high speed diesel (Singapore), was ruling at $ 39.68 a barrel on February 26, $ 39.70 a barrel on February 28, and $ 39.48 a barrel on March 4.

Naphtha (Singapore), which was being quoted at $ 39.25 a barrel on February 26, moved up to $ 39.78 a barrel the next day, and softened to $ 37.35 a barrel on March 4.

Unleaded petrol (FoB Singapore), ruled at $ 40.53 a barrel on February 26, $ 41.50 a barrel on February 28, and $ 40.65 a barrel on March 4.