Israel-Hamas war: Will govt let OMCs bear burden if oil prices escalate?

While Israel and Palestine are not the major oil players, prices of crude could escalate if the fight drags other nations of the Arab world, as well as the US, into it

Global crude prices eased on Tuesday after rallying up the previous day, lending uncertainty to the rates.While subdued demand worldwide may not allow prices to escalate much despite production cuts by the oil-producing countries, the Israel-Hamas war can potentially drive it up if it escalates to other areas in the Arab world.

The average monthly price of an Indian oil basket eased to $89.49 a barrel in October (till 9th) from $93.54 in September. However, it rose from $85.66 a barrel on Friday to $88.10 a barrel on Monday. Monthwise, it had peaked in September so far this financial year.  

However, the