Crude Oil Prices Plummet 1.88% to Rs 7,803 Amid Iran Deal Signals
The price of MCX Crude oil plummeted by 1.88% to Rs 7,803 on Thursday, marking its largest single-day fall this week.
This significant decline was largely due to diplomatic signals from Iran, which pushed energy markets into a two-session sell-down worth Rs 245 from Tuesday's peak of Rs 8,024.
Ankit Jaiswal, Senior Research Analyst at Univest, attributes the crude oil price fall to Iran deal progress. When diplomacy advances toward a deal that would bring Iranian oil back to global markets (adding approximately 1.5 million barrels/day), crude reprices lower systematically.
The auto, FMCG, cement, and chemicals sectors are expected to benefit from crude's decline, as every Rs 500 drop in crude saves approximately Rs 400-600 per vehicle, Rs 80-120 per tonne of cement pet coke, and Rs 0.90-1.20/kg of naphtha for chemicals.
However, ONGC's upstream oil realization is expected to be negatively impacted by the decline in crude prices.