Indian crude at fiscal's peak of $67.40 a barrel

Despite the tempering effect of an appreciating rupee, the Indian basket of crude oil touched its highest level this fiscal year "" $67.40 a barrel "" on May 18, a steep rise of 74 cents over the previous day's $66.76 per barrel.

Though this was in line with the global upswing in crude oil prices, the breach of the $67 mark is significant.

When prices of petrol and diesel were last cut by Rs 2 a litre and Re 1 a litre, respectively, on February 16, the price of the Indian basket of crude oil was at $67 a barrel, though the rupee then was at $44.10 to the dollar. It is currently at $40.47 to the dollar. 

CRUDE GAINS (price of Indian basket)
	2006-07	2007-08
Highest	$75.20	$67.40
Lowest	$49.85	$62.90
Average	$62.46	$65.20
(Price in $ per barrel)

The Indian basket comprises Oman-Dubai sour grade crude and Brent dated sweet crude in a 58:42 ratio.

Some analysts like Atul Shah, head of commodities at Emkay Commotrade Limited, saw little scope for a further hardening of Indian crude prices.

However, public sector oil refining and marketing companies like Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation could see a period of pain, since their under-recoveries would rise while retail prices are not likely to be hiked.