Respite in sight as global crude oil dips to $73 a Barrel

Fuel consumers in India may see some relief from high prices as international oil rates have cooled a bit. Crude oil slipped to $73 a barrel on Friday after hitting a multi-year high of $77 earlier this week on expectations of increased supply following reports that Saudi Arabia and the United Arab Emirates (UAE) have struck a deal to ease production cuts.
The UAE’s demand for a higher production quota had held back a deal on expanding supplies by the group of 23 producers known as OPEC+. The oil producers’ group had previously proposed an increase of 400,000 bpd each month between August and December, translating into a supply rise of 2 million bpd.

A new deal - the details of which are unclear currently – now promises to increase supply from August, which can help calm prices.

Rising global oil prices have sent domestic fuel rates to record levels, with petrol and diesel rising by about ₹30 and ₹20 per litre, respectively, in the last 13 months.