Page 7 - Test File
P. 7

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
   2   3   4   5   6   7   8   9   10