Global crude oil prices have fallen to a six-week low over the weekend after reports suggested that the United States and Iran could possibly secure a permanent peace deal. Brent crude oil futures for July settled 1.7 per cent lower at $91.12 per barrel, while West Texas Intermediate (WTI) fell by 1.73 per cent to $87.36 a barrel.
Crude oil prices have particularly come down since earlier this week amid defused tensions in the Strait of Hormuz.
Both sides have exchanged fresh drafts, though hostilities have also persisted despite a nearly two-month ceasefire.
US President Donald Trump said he would make a final determination on a preliminary deal to prolong the truce for 60 days. While Iran’s Foreign Ministry said no final understanding had been reached and that message exchanges were continuing, as per reports.
The rising prices had earlier caused uncertainty in several oil and energy-dependent nations, triggering austerity measures, particularly in India, South Korea, Japan, and Taiwan.
India has especially announced a series of measures to prevent energy shortages, as Prime Minister Narendra Modi urged citizens to avoid using more petrol and diesel and advised residents to refrain from purchasing gold for one year.
Nissos Keros — a Marshall Islands-flagged crude oil tanker carrying approximately 270,000 MT of crude oil cargo for India — safely crossed the Strait of Hormuz and is expected to arrive at Visakhapatnam on June 3, an official statement said.
All oil refineries in the country are operating at high capacity with adequate crude inventories, while sufficient stocks of petrol and diesel are being maintained.
Domestic LPG production from refineries has been increased to about 52 TMT/day to support domestic consumption.
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