After falling more than 60% from 2014 levels, the price of petroleum has risen sharply—from $46.7 per barrel in early February to $66.5 per barrel in early May. As a result, the price of India’s crude basket, which is a mix of Oman, Dubai, and Brent crude, has gone up by 40%.[1]
The increase is not an outcome of a demand-supply mismatch. In its latest Oil Market Report, the International Energy Agency says the price rose in April and May despite “persistently high global supply and continued stock build.”