No change in oil production targets: OPEC

FREE FLOWING: OPEC producers have decided not to increase crude supply into the markets.

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Keywords: Price, Crude Oil

New Delhi: Oil prices could header higher in the near terms as Organization of the Petroleum Exporting Countries (OPEC) producers have decided not to increase crude supply into the markets.

There was pressure on OPEC to increase supply especially from the US with oil prices close to $90 a barrel.

The organisation of petroleum exporting countries also agreed to meet again at the end of January to review its decision.

India buys its oil from the Middle East and not from OPEC. However, the Indian basket of crude has also been rising as is currently at 81 dollars a barrel.

A look what the crude oil prices are at the moment:

For every dollar (Rs 46.43 - US $1) increase in crude oil prices, there is a need to raise retail prices of a litre of petrol by 39 paise, diesel by 30 paise, kerosene by 36 paise and cooking gas by 67 paise. India imports about 76 per cent of its crude oil requirements in a year.

For India

As far as India is concerned, it remains the period of worry as the Indian oil company accumulated huge loses therefore politically issue is very sensitive, India imports 73 per cent of its oil so India will remain worried.

The prices are going up in three reasons first is refinery capacity, role of speculators in commodity market and third geo political concern over Iran, West Africa and Venezuela, so these are the main reason why prices are going up and after OPEC meeting results prices may come down.