When crude oil prices fell drastically in 2014 and 2015, for instance, the government increased the amount of taxes by more than Rs. 10 a litre on both petrol and diesel. The second is that the threat of the United States exiting itself from the Iran nuclear agreement has receded somewhat if not completely.
Stay long a December 2018 WTI $68-75/bbl call spread (net premium: $1.40/bbl). However, the commodity has advanced for the month of April. Oil prices have been lifted by concerns about the fate of the Iran deal as well as strong demand and supply cuts by OPEC and Russian Federation.
But the healthcare sector.SPXHC, which dropped 1.6 percent, weighed most heavily on the S&P 500, as shares of Allergan plc (AGN.N) and Celgene Corp (CELG.O) led the sector's slide. However, the commodity recorded a gain of 3.7 percent for the month.
"Rhetoric out of Israel regarding Iran add [s] significantly to the odds that the current nuclear deal with Iran is at risk of not being extended at least by the U.S." by a self-imposed May 12 deadline, analysts at consultancy JBC Energy wrote in a note Tuesday. His predecessor, Barrack Obama, has struck a deal with Iran and that will come to an end on May 12.
Stephen Bennock, the oil analyst at Singapore based brokerage firm PVM Oil Associates, wrote to his clients late last week, "The Iranian nuclear deal is dead in the water and a Trump torpedo is fast approaching".
BP in April signed a $6 billion investment deal to tap deepwater gas projects in India and extended its relationship with Brazil, one of the largest producers outside of the Organization of Petroleum Exporting Countries.
The price of domestic petrol and diesel going forward is likely to depend on the price of crude oil in the worldwide market as well as the policy preferences of the government as it heads into a series of elections in 2018 and 2019.
Oil rallied to a three-year high last month ahead of the decision on Iran by Trump and as conflicts in the Middle East heat up.
There's also tension between Syria and the US, and "ongoing conflicts between Saudi Arabia and Yemen", he says. These issues could pose problems in the supply of oils.
In terms of value, the country's gold reserves increased by about $10bn over the past year.
However, analysts expect rising demand from Asia, led by China, to absorb part of the increase in USA supply.
U.S. West Texas Intermediate crude futures were up 18 cents at $67.43, off a session high of $67.85. Total volume traded Wednesday was about 14 percent below the 100-day average. The contract fell 0.4 per cent last week. Brent crude had hit $70 a barrel during that week. However, prices have increased five percent for April.
London Brent crude for July delivery was down $1.46/Bbl, or 2%, at $73.23/Bbl by 2:28 p.m. ET. Trading on the bourse was closed on Monday and on Tuesday for Chinese public holidays.