Indian Oil Refiners Breathe Easy as Crude Prices Plummet

New Delhi: The US-Iran conflict has brought some respite to Indian refiners as crude prices plummeted over 9% on Monday. Brent crude for September delivery dropped to an intra-day low of $87.64 a barrel, while the September West Texas Intermediate contract on the New York Mercantile Exchange was at $83.17 a barrel.

The decline in prices eased immediate concerns over India's oil import bill, which is heavily reliant on imports. However, analysts caution that supply risks across key shipping routes remain unresolved.

Russia's decision to lift restrictions on diesel sales from the country also contributed to the price drop, helping prevent a surplus build-up at Russian refineries.

While prices may have retreated sharply from recent highs, concerns over inflation and higher import costs persist. A sustained $1 increase in crude prices over a year could add ₹18,000 crore to India's import bill.