NEW DELHI: India’s oil basket recorded $113.49 a barrel in March, the highest in four years, due to disrupted global supplies amid the conflict in West Asia. In March 2023, the oil basket had reached $112.87 after the Ukraine war broke out, but it slowly eased. The cost of crude for Indian refiners was pegged at $120.84 on April 1, when the Brent crude was hovering around $107 a barrel.The price of the Indian oil basket represents the average of Oman and Dubai for sour grades and Brent (Dated) for sweet grades in the ratio of crude processed during the previous financial year. International oil prices have been moving in the $100-120 band, putting pressure on economies around the globe, with consumers facing cost as well as supply woes.The eight members of the oil-producing countries group OPEC+ are likely to meet on Sunday to weigh a further oil output increase to add more barrels, which may ease crude prices.At its last meeting on March 1, OPEC+ had agreed to a modest output boost of 206,000 barrels per day for April, amid concerns of oversupply, as the military conflict began to disrupt oil flows from key West Asia members. The war has led to the largest oil supply disruption on record.Top OPEC producers Saudi Arabia, Iraq, Kuwait and the UAE have cut output due to the effective closure of Hormuz, which accounts for over 20% of oil transit. Russian output is also disrupted owing to drone attacks. Sunday’s meeting would normally be expected to decide May output quotas.Iraq, which lost over 70% of its oil revenue compared to Feb, has begun exporting crude using tanker trucks through Syria. Iraq has been particularly impacted as oil exports account for 90% of its budget revenues. It exported the majority of its oil through Hormuz till the war disrupted the transit. Like other exporters in the oil-rich region, Iraq has been left scrambling for alternative routes.
