Tag: CrudeOil

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US pumps 53 mn barrels from oil reserves

The United States has released about 53 million barrels of crude oil from its strategic petroleum reserves in a move coordinated with International Energy Agency (IEA) member countries to support global energy stability.

The decision comes as fuel prices remain under pressure due to global supply uncertainty and geopolitical tensions affecting oil trade routes. The additional supply is intended to help prevent sharp spikes in petrol and diesel prices.

Officials said the release is part of an emergency response mechanism under the IEA framework, which allows member nations to tap into strategic stockpiles during supply disruptions or market stress. The US plays a key role in such coordinated interventions due to its large reserve capacity.

The oil is being released from the Strategic Petroleum Reserve (SPR), the world’s largest emergency crude stockpile. It is designed to be used only in extraordinary situations when global supply is tight or disrupted.

Authorities said the immediate goal is to increase availability in the market and provide short-term relief to consumers facing higher fuel costs. Energy markets have remained volatile in recent weeks amid concerns over supply stability.

While such releases can help cool prices temporarily, they do not resolve underlying global supply-demand imbalances. Oil prices are expected to continue reacting to geopolitical developments and production decisions by major exporting nations.

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Crude oil tops $107 as Hormuz tensions soar

Global crude oil prices have surged sharply, with Brent crude crossing the $107 per barrel mark, after fresh tensions in the Middle East and the collapse of diplomatic talks between the United States and Iran.

The rally came as peace negotiations between the two countries reportedly stalled, with no agreement reached on reopening or securing the Strait of Hormuz. The waterway is one of the world’s most important oil shipping routes, and ongoing restrictions there have significantly reduced global supply.

According to market reports, Brent crude futures climbed to around $107.97 per barrel during intraday trading, marking a multi-week high. At the same time, US stock futures slipped, reflecting broader market uncertainty linked to rising energy costs and geopolitical risk.

The main trigger for the price surge has been continued disruption in the Strait of Hormuz, where shipping activity remains limited due to escalating tensions and security concerns. The strait normally handles a large share of global oil shipments, and any blockage or slowdown immediately impacts global supply chains.

Adding to market anxiety, diplomatic efforts involving mediators such as Pakistan reportedly failed to make progress, and no new round of talks has been confirmed. This has reduced expectations of an immediate resolution, pushing traders to price in tighter supply conditions.

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Petrol duty reduced to ₹3, diesel to zero

The central government on March 27, 2026, announced a major cut in excise duty on petrol and diesel to reduce the impact of rising global oil prices. The duty on petrol has been reduced from ₹13 to ₹3 per litre, while diesel duty has been cut from ₹10 to zero, effectively lowering taxes by ₹10 per litre on both fuels.

This move comes as crude oil prices have surged due to ongoing tensions in the Middle East. Supply concerns, especially around key oil routes, have pushed prices above $100 per barrel. As India depends heavily on oil imports, this has increased pressure on fuel prices and the overall economy.

The government said the decision was taken to protect consumers from a sharp rise in petrol and diesel prices. By reducing taxes, it aims to absorb part of the global price increase instead of passing the entire burden onto the public.

However, the benefit may not be immediately visible at petrol pumps. Oil marketing companies like Indian Oil, BPCL, and HPCL are currently facing losses because they have not fully raised fuel prices in line with global crude rates. Industry experts believe these companies may use the tax relief to recover losses before lowering retail prices.

Crude oil prices have seen a steep rise in recent weeks, jumping from about $70 per barrel to over $100. This sudden increase has made fuel costlier to produce and sell, creating challenges for both companies and the government.

To manage the situation, the government has also introduced export duties on petroleum products. This step is meant to ensure enough fuel supply within the country and to control price fluctuations.

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