Crude Oil Price Hits $126 Per Barrel
Uncertainty in talks between the United States and Iran amid the West Asia crisis is beginning to impact India as well. The rise in global crude oil prices is likely to affect the common people sooner or later.
On April 30, international crude oil prices rose to $126.41 per barrel, the highest level in the last four years. In the domestic currency market, the Indian rupee also crossed the psychological level of 95 against the US dollar.
This has increased concerns among officials in the Finance Ministry and the Reserve Bank of India (RBI). At market close, the rupee stood at 94.84 (down by four paise from the previous trading day), but experts say that a level above 95 is no longer unusual.
Impact on Fuel Prices
It is now almost certain that government oil companies will not be able to maintain current retail prices of petrol and diesel for long. Fuel prices are expected to be increased gradually, as done in the past.
During the trading session on April 30, the rupee remained around the 95 level and even touched 95.34 at one point. Earlier, the rupee had crossed the 95 mark on March 30, 2026.
The Reserve Bank of India (RBI) is actively trying to keep the rupee below 95. The central bank intervened in the currency market on Thursday, helping the rupee fall back below the 95 level.
Reasons Behind Market Pressure
- Brent crude reaching $126 per barrel, increasing India's trade and current account deficit concerns.
- Continuous outflow of foreign institutional investors (FIIs) from Indian markets.
- Rising US 10-year bond yield to 4.4%, increasing FII exit from Indian equity markets.
Supply Constraints Driving Oil Prices
The main reason behind the rise in crude oil prices is the disruption in global oil supply. Although there is no direct escalation in the West Asia conflict, supply through the Strait of Hormuz remains uncertain, keeping pressure on global oil markets.
