Brent crude stabilises near $91 a barrel following renewed US-Iran tensions and unresolved conflicts, potentially impacting global markets and India’s fuel costs amid ongoing volatility.
Brent crude steadied on Tuesday at just under $91 a barrel, after a sharp move higher in the previous session left traders weighing whether the latest geopolitical tensions could keep prices elevated. Reuters reported that Brent futures were down 0.07% at $90.99 a barrel, after ending the earlier trading day at $90.87. US crude also advanced, reflecting the same nervousness across energy markets.
The latest gains came after Iran and the United States declined to extend a June memorandum of understanding aimed at easing their conflict, allowing the agreement to expire on Monday. Reuters also reported that a senior Iranian official said Tehran would adopt a more offensive posture if diplomacy with Washington breaks down, underscoring the risk premium now built into oil prices.
For India, the impact matters because the country imports more than 85% of its crude oil needs. A prolonged rise in global benchmarks would lift the import bill and could feed into inflation, while also increasing the chances that domestic fuel rates will need to be adjusted. Retail petrol and diesel prices in major Indian cities remained unchanged on August 18, with petrol at Rs 102.12 a litre in Delhi, Rs 111.12 in Mumbai and Rs 110.93 in Bengaluru, according to the figures cited by NDTV Profit.
Longer-term market data show how volatile the crude backdrop has been. The US Energy Information Administration said Brent averaged $83 a barrel in 2023, down from $101 in 2022, as shifting Russian export flows and softer demand offset supply restraint from OPEC+. The agency has also forecast higher averages in 2024, reflecting tighter supply conditions, which suggests that fuel costs may remain sensitive to any fresh disruption in the months ahead.
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