Petrol Prices May Fall
Posted on: 29/Nov/2014 2:18:14 PM
Crude oil prices have dropped over 30 per cent in just six months forcing the 12-member OPEC to seriously think about a production cut. Members of the Organization of the Petroleum Exporting Countries (OPEC), which account for nearly 40 per cent of global oil output, will meet on Thursday to decide future course of action.
There`s no consensus whether the 12-member cartel will agree to a huge output cut at a time when the global economy is in the midst of a protracted slowdown.
India will be a big beneficiary if Brent crude prices indeed drop to $60 per barrel provided the rupee continues to trade in the 58-62 range against the US dollar.
For starters, petrol and diesel prices in the country will fall sharply because both these fuel have been decontrolled now. Going by past trends, petrol prices might fall below Rs 60 per litre if Brent crude prices drop below $60/barrel. If petrol prices fall below Rs 60/litre, it would be the first time since May 2011.
