Crude oil prices have remained steady in the face of the impact of crude oil supply from Iran. Brent crude has crossed $ 75 a barrel, and it is expected that it could cross the $ 80 barrel level. This is the same level that led to an increase in inflation in the UPA government. During the UPA regime, crude oil crossed $ 80 barrel level and reached $ 132 in July 2008.
American Light Crude WTI is also running above $ 66 a barrel. According to news agency IANS, Energy experts believe that Brend Crude could cross $ 80 a barrel in the near future with fears of supplying oil from Iran in the coming days due to the US sanctions on Iran.
Significantly, inflation was the main election issue in the 2014 general elections. In the defeat of the ruling UPA, the high prices of fuel had a decisive role. Between 2011 and 2014, the average price of crude oil was 108 dollars per barrel, making everyday items quite expensive. In its second term, the UPA government struggled to control inflation. Due to anti-incumbency wave, Narendra Modi got huge support in the general elections. After being the Prime Minister, Modi had a good fortune that the prices of crude oil were steadily falling. Its sentiment in the Indian basket has dropped from 113 dollars per barrel in May 2014 to USD 50 in January 2015. After this, the price remained to be constant and in the limit for a long time.
After the ban on importing oil from Iran by US, the exemption has been given to some major countries including India till 2nd May and it doesn't seem that the dates will even extend, and since after this announcement, the price of crude oil is increasing. In the meantime, though, there was a break in the US after reports of an increase in oil reserves, but its impact did not last long. With rising crude oil prices, petrol and diesel prices will again increase in India, although the Government of India claimed the adequate supply of oil.
Energy expert Narendra Taneja says that the concern of the Government of India is the rising cost of oil in the international market more than the supply of oil. He said that due to the import of oil from Iran, Brent crude prices can go up to $ 80 a barrel in the international market, which is a concern for India.
India has already reduced the import of oil from Iran and it has come down by 50 percent. Iran is one of the world's leading oil producing countries, and the supply of oil from there has already become a fast-moving trend in good price. Last year, Brent crude prices went up to $ 86 a barrel, which was the highest level since 2014.
It is worth noting that Russia has been cutting 12 lakh barrels per day from January this year to produce oil in OPEC and non-OPEC countries, which has led to an uptrend in oil prices this year. In the meanwhile, the US sanctions on Venezuela got this boost and support. According to the US Agency Energy Information Administration report, Iran is the world's largest oil producing country after the US, Saudi Arabia, Russia, Canada, China, and Iraq. Daily production of Iran in 2018 was 44.7 million barrels.
Ajay Kedia, director of the Kedia Commodity said that OPEC and non-OPEC countries Russia is cutting 12 lakh barrels per day from January this year due to the production of oil, which has led to a boom in oil prices this year. In the meanwhile, the US sanctions on Venezuela got this boost and support.
Kedia said that OPEC may decide to increase oil production or cut reduction in the meeting scheduled in June before the prices will get support due to the supply crisis. So there is no doubt that Brent crude prices will go up to $ 80 a barrel.
Further, before the start of the hurricane season in July-August in the US, oil wells may be stopped for some time in May for maintenance, which can reduce production. This can also be a reason for oil prices to come forward.
