“Crude oil remains stuck in a broad range as support from supply risks is countered by increasing demand uncertainty," said a recent report by Kotak Securities.
Although Shanghai and Beijing are gradually taking steps to ease restrictions, experts said that the restrictions have severely impacted the Chinese economy, one of the largest crude importers.
Further development in the EU’s plan to impose an embargo on energy imports from Russia would also provide cues to the market. However, the EU’s failure to reach a consensus has eased supply concerns. Oil prices last closed on a positive note amid a decline in crude oil inventory in the US. On 27 May, the July contract of Brent on the Intercontinental Exchange closed at $119.43 per barrel, higher by 1.73% than its previous close.
The July contract of West Texas Intermediate on the NYMEX closed at $115.07 per barrel, higher by 0.86%.
Despite the volatility in the global oil prices, retail prices of petrol and diesel in India have remained unchanged for a week now.
On Sunday, petrol was sold for ₹96.72 per litre, while diesel was priced at ₹89.62 a litre.
Fuel prices were last revised on 22 May, a day after the government announced a cut in the central excise duty on petrol by ₹8 per litre and on diesel by ₹6 a litre. Several state governments, including Maharashtra, Karnataka, Odisha, Kerala, and Rajasthan, have also lowered value-added taxes after the Centre’s move.
Rising crude oil prices and a ₹10 per litre increase in petrol and diesel prices from 22 March-6 April raised inflationary concerns.
