Industry Odisha Bureau, April 30: No sooner did US President Donald Trump make it clear and loud that Hormuz blockade imposed against bête noire Iran’s port activities would continue than the price of globally essential Brent Crude oil spiked close to $120 per barrel.
The US President reportedly averred that Washington would not budge from the ongoing US Naval blockade of Strait of Hormuz unless and until a nuclear deal is inked with arch rival Iran.
Following such a stance by Trump on Iran reportedly stoked jitters of prolonged energy supply disruptions that have already been on since the tug of war between the forces of US-Israel and Iran broke out in the wee hours of February this year.
As per media reports, “Brent crude traded close to $120 a barrel. The June contract of Brent on the Intercontinental Exchange was trading at $119.80 per barrel early Thursday, up 1.50% from its previous close, while the June contract of West Texas Intermediate on the Nymex rose 0.36% to $107.26 a barrel”.
Quoting Investment Information and Credit Rating Agency of India Limited (ICRA)’s Senior Vice President and Co-Group Head Prashant Vasisht, media reports said, “The stable pump prices for auto fuels amid elevated crude oil prices are impacting the profitability of the oil marketing companies (OMCs) despite the recent reduction in excise duty.”
In this context, the ICRA Sr VP and Co-Group Head reportedly further stated, “At crude prices of $120–125 per barrel and long-term averages of crack spreads, the marketing margins on petrol and diesel are estimated to be negative ₹14/litre and ₹18/litre respectively.”
He further opined: “The profitability of oil marketing companies has been hit hard owing to the status quo maintained in the retail prices of petrol and diesel despite the impact of pressures being mounted by the raw material costs along with the supply chain disruptions. The Oil Marketing, City Gas Distribution, Fertilizer and Chemical sectors are very much prone to jeopardy in fiscal 2026-27.”
