New Delhi, 08 September (H.S.): Crude oil prices continued their upward trend in the international market on Tuesday amid escalating tensions in West Asia. As a result of the sustained rally, Brent crude surged close to the $100-per-barrel mark. West Texas Intermediate (WTI) crude also traded near the $95-per-barrel level.

Brent crude opened almost flat at $97.19 per barrel, registering a marginal gain of $0.03. However, shortly after trading began, it slipped to $96.81 per barrel before gaining momentum. Shortly after 3 p.m. Indian time, Brent crude crossed the $99-per-barrel mark and touched $99.37 per barrel. It subsequently pared some of those gains. By 6 p.m. IST, Brent crude was trading at $98.72 per barrel, up $1.56, or 1.61 per cent.

Similarly, WTI crude opened at $92.54 per barrel, gaining $1.06. It initially declined to $90.87 per barrel shortly after the opening, but subsequently picked up momentum. It soon climbed to $94.73 per barrel, although a marginal decline was recorded thereafter. At 6 p.m. IST, WTI crude was trading at $93.84 per barrel, up $2.36, or 2.58 per cent.

Market experts said the rise in international crude oil prices could have a significant impact on an oil-importing economy such as India. Ravichander Khurana, CEO of Khurana Securities and Financial Services, said India imports around 85 per cent of its crude oil requirements from the international market. Consequently, a sustained rise in crude oil prices could substantially increase the country’s import bill.

Khurana said Brent crude had been trading at around $71 per barrel in the international market before the conflict between the United States and Iran began. This means that Brent prices have risen by as much as 40 per cent since then. Apart from increasing the country’s import bill, higher crude prices are also placing growing pressure on oil marketing companies.

Oil marketing companies have previously been compelled to raise petrol and diesel prices due to increases in crude oil prices. If the current rally in crude prices continues, oil marketing companies could once again raise the prices of petrol, diesel, CNG and PNG. Such an increase could fuel inflation, directly affecting the prices of essential commodities and putting additional pressure on household budgets.

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Hindusthan Samachar / Jun Sarkar