{"id":141797,"date":"2021-10-20T18:26:49","date_gmt":"2021-10-20T12:56:49","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=141797"},"modified":"2021-10-20T18:26:49","modified_gmt":"2021-10-20T12:56:49","slug":"explained-why-global-fuel-prices-are-up-how-india-is-impacted","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/explained-why-global-fuel-prices-are-up-how-india-is-impacted\/","title":{"rendered":"Explained: Why global fuel prices are up, how India is impacted"},"content":{"rendered":"\n
What is the news?<\/strong><\/h5>\n

The price of Brent Crude breached the $85 per barrel<\/strong> mark earlier this week reaching its highest level since 2018 on the back of a sharp increase in global demand as the world economy recovers from the pandemic.<\/p>\n

Key oil producing countries have kept crude oil supplies on a gradually increasing production schedule despite a sharp increase in global crude oil prices.<\/p>\n

The price of Brent crude has nearly doubled compared to the price of $42.5 per barrel<\/strong> a year ago.<\/p>\n

Why the prices are up?<\/strong><\/h5>\n

Slow production by OPEC+<\/strong>: OPEC+<\/a><\/span><\/strong> had agreed to sharp cuts in supply in 2020 in response to Covid-19 global travel restrictions in 2020 but the organisation has been slow to boost production<\/strong> as demand has recovered.<\/p>\n

Supply side issues in the US<\/strong> including disruptions caused by hurricane Ida<\/p>\n

Lower than expected natural gas supplies from Russia<\/strong> amid increasing demand in Europe have raised the prospect of natural gas shortages in the winter.<\/p>\n

What is the impact on India?<\/strong><\/h5>\n

– Impact on fuel prices<\/strong>: High crude oil prices have contributed to the prices of petrol and diesel regularly setting new record highs across the country in 2021.<\/p>\n

– Impact on domestically produced natural gas price<\/strong>: High international gas prices have led to an upward revision in the price of domestically produced natural gas.<\/p>\n

The increase in gas prices has put upward pressure on the price of both Compressed Natural Gas (CNG) used as a transport fuel and Piped Natural Gas (PNG) used as a cooking fuel.<\/p>\n

High international prices of coal have added to a coal shortage at India\u2019s thermal power plants<\/strong> by forcing thermal plants using imported coal that could not pass on the higher price of coal to procurers to stop supplying power.<\/p>\n

India and other oil importing nations have called on OPEC+ to boost oil supply faster, arguing that elevated crude oil prices could undermine the recovery of the global economy.<\/p>\n

How has OPEC+ responded?<\/strong><\/h5>\n

In its latest round of meetings, the OPEC+ group of oil producing countries reaffirmed that they would increase total crude oil supply by only 400,000 barrels per day in November despite a sharp increase in prices.<\/p>\n

The output of the top oil-producing countries \u2013 Saudi Arabia, Russia, Iraq, UAE and Kuwait \u2014 would still be about 14% lower than reference levels of production<\/strong> post the increase in November.<\/p>\n

Source<\/strong>: This post is based on the article \u201cExplained: Why global fuel prices are up, how India is impacted<\/strong>\u201d published in The Indian Express<\/strong> on 20th Oct 2021<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

What is the news? The price of Brent Crude breached the $85 per barrel mark earlier this week reaching its highest level since 2018 on the back of a sharp increase in global demand as the world economy recovers from the pandemic. Key oil producing countries have kept crude oil supplies on a gradually increasing… Continue reading Explained: Why global fuel prices are up, how India is impacted<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,9],"tags":[],"class_list":["post-141797","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-public","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1702364333},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/141797","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=141797"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/141797\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=141797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=141797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=141797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}