Global crude oil prices have surged to the $110-per-barrel mark as escalating geopolitical tensions and supply uncertainty fuelled fresh buying, while India's crude oil basket has averaged $122.01 per barrel in October, raising fresh concerns over the country's import bill.
Brent crude gained 3.7 per cent, recording its second consecutive weekly advance, as concerns over attacks on energy infrastructure in the Middle East and the Russia-Ukraine conflict intensified, Times Now reported on Saturday.
Indian basket near 2026 highs
The Indian Basket of Crude Oil — a composite benchmark combining Brent Dated with Oman and Dubai crude prices — averaged $122.01 per barrel in October so far, compared with $116.09 in September. It was quoted at $119.39 per barrel as of October 15. The basket had fallen to $82.04 per barrel in July before beginning a sharp upward move, and October's average is nearly 49 per cent higher than that level and about 5.1 per cent above September.
Traders are factoring in the possibility of further disruptions. Iran-backed Houthi rebels have continued missile and drone attacks targeting Saudi Arabia, while Russia and Ukraine have exchanged strikes on energy infrastructure. Eurasia Group analysts raised their probability of an intensification in the conflict to 65 per cent, from 35 per cent. On Friday, the United States offered up to 17 million barrels from its Strategic Petroleum Reserve in an attempt to ease price pressure.
Implications for India
For India, which remains heavily dependent on overseas supplies to meet its energy requirements, the sustained increase in crude prices carries implications for the import bill, trade balance and inflation outlook. Higher costs could increase the amount of foreign exchange required to purchase energy and put pressure on the current account and the rupee if elevated prices persist.
Crude prices have gained more than 75 per cent this year, according to the report, as conflicts in the Middle East and Russia have disrupted energy supplies, with European diesel futures more than doubling over the year.
Sources: Times Now — Oil On Boil: Crude Hits $110, Indian Basket Climbs To $122
Brent crude gained 3.7 per cent, recording its second consecutive weekly advance, as concerns over attacks on energy infrastructure in the Middle East and the Russia-Ukraine conflict intensified, Times Now reported on Saturday.
Indian basket near 2026 highs
The Indian Basket of Crude Oil — a composite benchmark combining Brent Dated with Oman and Dubai crude prices — averaged $122.01 per barrel in October so far, compared with $116.09 in September. It was quoted at $119.39 per barrel as of October 15. The basket had fallen to $82.04 per barrel in July before beginning a sharp upward move, and October's average is nearly 49 per cent higher than that level and about 5.1 per cent above September.
Traders are factoring in the possibility of further disruptions. Iran-backed Houthi rebels have continued missile and drone attacks targeting Saudi Arabia, while Russia and Ukraine have exchanged strikes on energy infrastructure. Eurasia Group analysts raised their probability of an intensification in the conflict to 65 per cent, from 35 per cent. On Friday, the United States offered up to 17 million barrels from its Strategic Petroleum Reserve in an attempt to ease price pressure.
Implications for India
For India, which remains heavily dependent on overseas supplies to meet its energy requirements, the sustained increase in crude prices carries implications for the import bill, trade balance and inflation outlook. Higher costs could increase the amount of foreign exchange required to purchase energy and put pressure on the current account and the rupee if elevated prices persist.
Crude prices have gained more than 75 per cent this year, according to the report, as conflicts in the Middle East and Russia have disrupted energy supplies, with European diesel futures more than doubling over the year.
Sources: Times Now — Oil On Boil: Crude Hits $110, Indian Basket Climbs To $122
