Poll to insulate India from rising global prices

DOMESTIC REVIEW/ ENERGY

The decision by Organisation of Petroleum Exporting Countries (OPEC) to reduce output by four per cent from April is expected to push up prices, which have been steady at $20-30 over the past week.

Another factor expected to add to the sentiment is the OPEC's decision to move immediately to plug leakage by members busting production limits.

The international oil market was taken offguard on Tuesday by OPEC's decision to cut production. The market had widely expected the cartel to defer any change in official production limits of 24.5 million barrels a day until its next scheduled meeting on March 31.

However, the hardening of international prices of crude will not hit the Indian consumer of petrol and diesel with petroleum minister Ram Naik announcing on Tuesday that the prices of the two auto fuels will not be changed till the forthcoming elections.

The international benchmark Brent (dated) crude, which was hovering at $ 29.59 a barrel on February 4, moved down to $ 29.25 a barrel on February 6, to be quoted at $ 30.09 on February 10.

Jet fuel (Singapore), which was being quoted at $ 36.58 a barrel on February 4, moved down to $ 36.33 a barrel on February 6, and touched $36.85 a barrel on February 10.

Prices of gas oil (Singapore) with 0.5 per cent sulphur, which were ruling at $ 36.73 a barrel on February 4, moved up to $ 37.33 a barrel on February 6, and softened to $ 37.25 a barrel on February 10.

Naphtha (Singapore), which was being quoted at $ 33.30 a barrel on February 4, touched $ 32.53 a barrel on February 6, and moved down to $ 32.45 a barrel on February 10.

Prices of unleaded petrol (fob Singapore), which were ruling at $ 38.03 a barrel on February 4, moved down to $ 35.98 a barrel on February 6, and went down further to $ 35.83 a barrel on February 10.