Crude oil price for India and how to calculate it ?

Crude Oil Price and How to calculate it ?

 

Oil prices on Monday tumbled to level  not seen ever before to negative in the first in history in WTI basket Mars Us basket closing in negative -16$ and -30$ Respectively . But both basket is of USA nothing to do with Indian Basket from where India Purchases Oil .

Click here to read How low crude oil price will going to affect Indian Economy 

What is Indian Basket of Crude Oil ? and How to Calculate Indian Basket Crude oil price  ?

Indian Basket is representation of derived basket of crude oils comprising Dubai and Oman (DME Oman) and Brent . During the year 2016-2017, the ratio was 72.38 : 27.62 (Dubai : Brent) and Since the year 2017-2018, the ratio is 74.77 : 25.23 (Dubai : Brent). The Indian Basket is weighted average of daily prices and is updated daily on the website of the Petroleum Planning and Analysis Cell of the Ministry of Petroleum and Natural Gas.

That means the India crude oil basket price can be calculated by 

75* Average Price of Dubai and DME oman Crude oil Basket + 25 * Price of Brent crude oil Basket 

                                                                  diveded by 100

Since Dubai basket crude oil price is currently 28$ and DME Oman Crude oil Price is 24$ respectively while Brent Crude oil price is 25$ So it makes India Crude oil Basket price roughly 24$ to 25 $ ,Since sell of average amount of oil to India keep changing between Dubai Basket and and Oman Basket .

So first of all India Crude oil  Basket Price is not Negative like WTI and Mars USA but yes 25$ is very less as compare to 120 $ which we use to pay during 2012 -2013 , and It is going to very positive effect on Indian Economy .

As on 21/4/2020 it is Rs 1754 as shown in picture .

Click here to read How low crude oil price will going to affect Indian Economy