Petrol-Diesel Rate: Crude oil prices may go down sharply in October. Saudi Arabia, one of the world’s largest crude oil producing countries, may decide to reduce the prices of almost all grades of crude oil sold to Asia. Saudi Arabia may take this step due to the fall in the Middle East benchmark Dubai. If Saudi Arabia moves in this direction, it can be very good news for India. Due to the availability of cheap crude, the country’s oil marketing companies can cut the prices of petrol, diesel and ATF.
Saudi Arabia may reduce the price of Arab Light Crude
The Economic Times quoted industry sources in its report on Tuesday saying that Saudi Arabia is seriously considering this. According to the report, the official selling price (OSP) for Arab Light Crude is expected to fall by 50 to 70 cents per barrel in October. A similar trend has been seen in Dubai prices last month. 3 out of 5 refining sources involved in a Reuters survey have also given information about this.
The demand for crude is continuously decreasing in China
Sources said that such a reduction in crude prices is also reflecting the low demand from China. Refining margins have weakened in China. There is a slowdown in the manufacturing and real estate sectors there. Due to this, the demand for petrol and diesel is also getting affected. A source said that ‘overall the margins are bad. The situation in China is even worse. He said that usually the demand for oil is the best in September. But this year it is creating disappointment in crude demand.
OPEC countries are also going to increase their production
On the other hand, OPEC+ supply is also going to increase from October. The eight members of the OPEC group are planning to increase production by 180,000 barrels per day next month. This is part of the plan to eliminate the production limit of 2.2 million barrels per day (BPD). However, it is also expected that the OSP of Arab Light for October will remain little changed as the Dubai benchmark strengthened in the last week of last month. Strong demand for Arab Medium and Arab Heavy may reduce prices by less than 50 cents. Saudi crude OSPs are usually released around the 5th of every month. These also set the trend for Iran, Kuwait and Iraq. This affects about 9 million BPD of crude oil headed for Asia.
Read this also
Baazar Style Retail IPO: People flocked to the IPO of the company supported by Rekha Jhunjhunwala, GMP is also doing wonders
