International crude oil prices fell over 1% on Wednesday after a sharp rise in US inventories, though losses were limited by supply concerns amid the West Asia conflict.
A Reuters report, citing data from the American Petroleum Institute, said US crude stockpiles rose by 6.56 million barrels in the week ended 13 March.
At 8:50 am, the April contract of Brent crude on the Intercontinental Exchange was trading at $102.07 per barrel, down 1.27% from the previous close. The April contract of West Texas Intermediate (WTI) on the New York Mercantile Exchange fell 1.92% to $94.36 per barrel.
Supply risks
The decline in prices remained limited due to ongoing global supply concerns linked to the conflict in West Asia.
An agreement between the Iraqi government and the Kurdistan Regional Government to resume oil exports to Turkey’s Ceyhan energy hub from Wednesday has offered some relief to markets, experts said.
Iraq’s oil minister Hayan Abdel-Ghani said on Tuesday that the agreement had been reached to restart supplies to Turkey. Kurdistan is a semi-autonomous region in northern Iraq bordering Turkey.
The minister also said that the Iraqi government is in talks with Iran to allow some Iraqi oil tankers to pass through the Strait of Hormuz, according to a report by Iraqi News Agency (INA).
Iraq, unlike Saudi Arabia and the United Arab Emirates, does not have alternative routes such as pipelines to bypass the Strait of Hormuz, which has remained closed for over two weeks. This has forced Baghdad to cut oil production as storage capacities filled up.
India impact
The surge in global crude prices is already feeding into India’s import bill and fuel supply concerns.
India imports nearly 90% of its crude oil needs, making it highly vulnerable to global price shocks.
The recent spike has also contributed to an emerging LPG supply crunch, with disruptions in shipping routes affecting availability.
Analysts estimate that every $1 per barrel increase in crude prices raises India’s import bill by roughly ₹16,000 crore annually, underscoring the macroeconomic risks of sustained high prices.
The Indian basket of crude—which reflects the price at which domestic refiners procure oil—has surged sharply in recent weeks.
On 16 March, it stood at $142.69 per barrel, while the monthly average has climbed to $108.23, significantly higher than $69.01 per barrel in February.
