India’s crude oil basket surged to nearly $123 per barrel on Thursday, September 24 following ongoing uncertainties in Middle East and disruptions to shipping through key waterways raised concerns over global oil supplies and inflationary worries.
The Indian crude oil basket stood at $123.67 per barrel today, according to Petroleum Planning and Analysis Cell (PPAC) data.
The Indian crude basket is a derived mix of sour grades, including the Oman and Dubai average, and the sweet grade Brent dated, processed by Indian refineries. The basket has also reflected a significant jump on a monthly average basis. India’s crude basket has averaged $115.48 per barrel so far in September, 28% higher from the $90.19 average witnessed in August.
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Oil Markets Remain Volatile
The latest jump comes as oil prices remain highly volatile with the US-Iran tensions nearing its seventh month. Prices have swung due to changing expectations around the war, hints of improving Middle East oil flows and speculation that Washington could restrict diesel exports.
The Strait of Hormuz remains at the heart of the supply risk. Iran has maintained that it has sovereign control over the waterway, while the US has said its status should not be altered. Washington has also imposed a blockade on Iranian ports.
On Thursday, global crude oil prices fell below $106 a barrel after rising more than 7% over the previous two days, while West Texas Intermediate traded near $93 as Iran puts forward a seven-day plan to end hostilities with the United States, reopen the Strait of Hormuz and restart nuclear talks, its foreign minister said on Friday.