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WTI Oil Prices

Turn negative

Demand collapse due to
coronavirus and lack of storage
pull down May futures into Indian Basket
negative territory on April 20
Crude OIl WTI FuTures ($) lowest in 15 yrs
60 The average price for the Indian basket in
50 March was $33.36 a barrel, a 15-year low;
40 the lowest ever is $18.24 in Nov 2001
OIL’S ZERO-SUM 20 70.01 (IndianBasket)-$/BBL
30
Crude OIl PrICe
10
0
-10
The May futures contract for West Texas -20 71 62.37 63.63 59.35 61.72 59.70 62.53 65.50 64.31 54.63
Intermediate (WTI) crude oil fell to minus -30 33.36
$37.63 a barrel. But retail prices in India have -40 24-Jan-20 21-Apr-20
GAME not fallen due to sharp increase in excise duty
Brent Crude Falls Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
By shivani sharma | Graphics by Tanmoy Chakraborty
But not as Much Source: Petroleum Planning & Analysis Cell

The more relevant benchmark for
$ India is down 65 per cent in 2020, still, no
the lowest in 18 years
45bn BrenT Crude OIl PrICes ($) respite for -7.4%

India’s likely savings 70 Consumers -8.3%
on oil import bill in 60 BrenT Crude* PeTrOl
FY21, according to CII, 50 Brent crude has
if international crude 40 plunged 65 per dIesel
oil prices average $35 30 cent so far this BrenT Crude
per barrel compared 20 year. But retail *Based on
to $65 in FY19 prices of petrol and -53% last 15-day
10 diesel are down 7 average
price in
0 per cent and 8 per rupee
23-Jan-20 Source: oilprice.com 21-Apr-20 cent, respectively -66% Bloomberg

Blame It on high ...And retailers not
excise duty... Cutting Prices sharply

The Centre recently increased excise Also, state-run oil retailers kept
duty per litre of petrol and diesel by `10 prices high to make up for losses
and `13, respectively due to low fuel demand
exCIse duTy (`/litre) PeTrOl PrICes-delhI-nCr ((`/Litre)
35 76
30
25 74
20
15 72
10 Petrol 70
5
0 diesel 68 24-Jan-20 22-Apr-20
May-12 Oct-12 Mar-14 Oct-14 Nov-14 Dec-14 Dec-15 Apr-16 Sep-17 Oct-18 Jul-19 Mar-20 May-20 Source: Bloomberg; IndianOil

6 31 May 2020 Business Today 7