Prices of Petrol and other consumer fuels might still get higher, as the Oil prices shto up on Monday. The prices have seen a surge stemming out of worries on supplies, as major wars continue in Iraq and Yemen in the Middle East region.
Oil surges as Islamic State marches towards Baghdad
The Islamic State has taken control of the western Iraqi city of Ramadi. The city of Ramadi is the capital of Iraq’s crucial Anbar province. With this city now being falling into the hands of the Islamic State (IS), serious concerns have surfaced over the supply of Oil.
The U.S. crude has seen a rise in the prices with the cost reaching 59.75 USD per Barrel. The Brent Crude has reached 66.90 USD a barrel
War continues in Yemen
Adding to the concerns, the Saudi Arabian strikes have resumed on Yemen against the Houthi militia. In a fresh round of attacks the Saudi allies struck upon Aden, after a five day period of truce had expired.
This news has further fueled up the rise in Oil prices. Analysts are worried if the production and supply routes might get affected because of these tensions in the Middle East region.
OPEC meets on June 5
The Organization of Petroleum Exporting Countries (OPEC) will meet on June 5. Expectations are that announcements might come in from the organization regarding the decisions related to production cuts by its member countries.
Earlier during a meeting in November last year, the OPEC had decided to maintain its output without any reduction in the production. The idea was that this would would force the high-cost U.S. shale oil producers to begin production cuts.
Petrol Prices hiked in India on March 15
Petrol price were increased by Rs 3.13 per litre and diesel by Rs 2.71 per litre in the last week. This was the second steep increase in the fuel rates carried out by the Modi government in the month of May. Earlier on May 1, the govt. had announced a steep hike of Rs 3.96 per litre increase in petrol and Rs 2.37 a litre increase in Diesel prices.