Domestic basket at $50.60

India's crude oil basket eased to $50.60 (Rs 2,240) per 1 barrel Tuesday, down 82 cents from a day earlier, the petroleum and natural gas ministry said in a release today.

Tuesday's price was just 13 cents higher than its lowest level ($50.60 per barrel) in the current financial year started April touched Friday.

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

Tuesday, Brent crude had closed at $50.86 per barrel, down $1.49 from Monday. The Dubai benchmark was down 36 cents to $50.22 and Oman fell by 38 cents to $50.62.

Crude oil prices had risen Monday on speculation that the Organisation of the Petroleum Exporting Countries will meet before the scheduled meeting in March to discuss output cut on the back of softening crude prices.

However, Tuesday, Saudi Arabia, the largest crude producer in the cartel, said neither a production cut nor an emergency meeting is needed.

The Opec had last cut output by 1.2 mln barrel per day effective November 1.
 

EASING OUT Indian crude oil prices in $
Period	Price/barrel
Jan 16	50.60
Dec average	60.35
Nov average	57.80
Oct average	57.27
Sep average	61.04
Aug average	70.84
Apr-Jun average	67.13
Jul-Sep average	67.71
Oct-Dec average	58.45
FY07 average (so far)	63.80
FY06 average	55.72
FY07 lowest price till date (Jan 15, 2007)	50.47

Crude oil for delivery in February on the New York Mercantile Exchange Tuesday touched a 20-month low to close at $51.21 per barrel, down $1.78.

In the month ended Friday, the Indian basket averaged at $52.77 a barrel as against the December average of $60.35.

Petroleum and Natural Gas Minister Murli Deora had Tuesday said India will be comfortable if crude prices fall to $40 per barrel.

In the wake of easing crude prices, government is likely to review petrol and diesel prices at the end of the current month.