Global crude oil prices declined on Monday after reaching a five-month high near $109 per barrel on Friday, offering some relief amid persistent geopolitical tensions and supply concerns.
Brent crude fell 1.88% to $107.80 per barrel, while US benchmark West Texas Intermediate (WTI) declined 1.19% to $100.20.
The correction came despite continuing hostilities in the Persian Gulf and renewed Ukrainian attacks on Russian energy infrastructure.
Brent has gained more than 75% this year as conflicts in the Middle East and Russia-Ukraine war disrupted global energy supplies.
Hormuz Shipments Ease Supply Concerns
Reports from the United Kingdom Maritime Trade Operations Centre indicated that additional tankers had been struck near Saudi Arabia’s coast.
However, the United States said its forces had helped move more than 100 million barrels of oil through the Strait of Hormuz during the preceding week.
The announcement suggested that escorted shipments were helping maintain some energy flows despite regional instability.
Supply disruptions have pushed refined petroleum product prices higher, with petrol and diesel recording sharper increases than crude.
These developments have added to inflationary pressures and raised concerns about global economic growth.
The Central Government has revised windfall taxes on petroleum product exports, effective Oct 16.
The duty on petrol exports increased from ₹0.50 to ₹2.50 per litre, while the levy on diesel exports fell from ₹16 to ₹8.50 per litre.
India initially introduced windfall taxes on fuel exports in July 2022 before withdrawing them two years later.
The government reinstated the duties in March 2026 amid rising energy prices linked to the US-Israeli conflict with Iran.
Export levies are currently reviewed every fortnight and adjusted according to international petroleum prices.
Meanwhile, speculation about crude reaching $200 per barrel has resurfaced.
According to the world’s largest independent oil trader, temporary shipping arrangements are helping prevent a more severe price surge.
With oil storage capacity reportedly under pressure in the Middle East and Western markets, further supply disruptions could intensify price volatility.
However, the $200 scenario remains speculative and depends on how geopolitical tensions and oil shipments develop.
