Business & Finance

Brent Crude Falls Below $94, Indian Refiners See Lowest Prices in Two Months

By TNN

Brent crude prices slipped below $94 a barrel late Wednesday for the first time in two months, before rising to $97.7 by the evening. The move comes as markets weigh a possible end to the Iran conflict after Republicans lost the mid‑term elections and President Donald Trump said the war was a key factor in his party’s loss. The Indian crude basket, which averaged $119.9 a barrel in October – its highest level since March 2012 – fell to $103.8 on Tuesday, the lowest in two months, amid hopes of a resolution to the US‑Iran conflict. Iran’s exemption of commercial ships from four countries, including India and China, from transit restrictions in the Strait of Hormuz has raised expectations among Indian refiners that West Asian crude, their preferred grade, will become more available and prices will ease further. Brent has risen about 70% this year as the war disrupted Persian Gulf supplies, and prices have remained volatile with the US and Iran threatening each other. Although the post‑poll price softening will not relieve consumers, it does offer some relief to oil marketing companies that have been incurring losses on every litre of petrol and diesel sold. Most have reported strong profit growth during the September quarter due to lower prices in the three months, but they warn that they may have to bear the brunt of higher prices in the current quarter. A sustained softening would provide respite to them and individuals as higher energy costs pressure production costs, fuel bills and cooking gas prices. ICRA chief economist Aditi Nayar said a sustained decline in global crude prices would help contain the need for oil marketing companies to raise retail prices of petrol and diesel, thereby limiting another round of inflationary pressures in the economy. "ICRA expects CPI inflation to average 5.2% in FY2027," Nayar said.