Kathmandu. With the price of crude oil in the international market hovering around $115 per barrel, there is a risk of pressure on the import cost of petroleum products and the overall price hike in Nepal. The price of petroleum products has increased due to concerns that oil supply will be affected due to the heightened tension in the Middle East. <\/p>\n
On Monday, the price of Brent crude is trading around $ 115 per barrel. Its price has increased by more than 5 percent in the last one week. The price of Brent crude has reached the highest level of the last 52 weeks at $ 117.41 per barrel. <\/p>\n
Since Nepal has to depend on imports to meet the domestic demand for petroleum products, the increase in prices in the international market can directly put pressure on the import expenditure. If the price of crude oil and refined petroleum products remains high for a long time, there is a risk that the purchase cost of the Nepal Oil Corporation will increase and it may affect the internal price of fuel. <\/p>\n
The increase in fuel prices may also put pressure on the prices of agricultural products, industrial goods, and daily consumables as transportation and transportation costs increase. This creates a risk of increasing overall inflation. If the increase in fuel prices increases the cost of imports, then Nepal’s foreign exchange reserves may also be pressured. <\/p>\n
The ongoing tensions in the Middle East and the possibility of further conflict have added to the uncertainty in the global energy market. According to Enrich Money CEO Ponmudy R, the ongoing tensions in the Middle East and concerns about supply disruptions are the main reasons for the high price of crude oil. US West Texas Intermediate (WTI) crude is trading around $101 to $102 per barrel, while Brent crude is trading above $115. <\/p>\n
Meanwhile, concerns have also been raised about the safety of the Strait of Hormuz, which is important for energy supply. About 20 to 25 percent of the world’s crude oil and liquefied natural gas (LNG) shipments pass through the world’s seas. The disruption there can affect both the supply and price of oil in the world market. <\/p>\n
The United States has ordered non-emergency government employees and their eligible family members in Saudi Arabia to leave the country due to security risks. Recent missile and drone attacks there have added to concerns about energy infrastructure and transportation security. <\/p>\n
The attacks and conflicts in West Asia have affected about 30 million barrels per day of regional oil processing capacity, the report said. If the supply disruption continues, there is a risk that the price of crude oil in the international market could rise further. <\/p>\n
The real impact of this in Nepal will depend on how long the prices remain high in the international market, the purchase price of petroleum products, the exchange rate of the US dollar and the price adjustment of the Nepal Oil Corporation. If the price hike continues for a long time, the import cost may increase and there may be additional pressure on the prices of transportation, products and consumer goods. <\/em> <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" Kathmandu. With the price of crude oil in the international market hovering around $115 per barrel, there is a risk of pressure on the import cost of petroleum products and the overall price hike in Nepal. The price of petroleum products has increased due to concerns that oil supply will be affected due to theContinue reading “Crude oil price soars to $115 per barrel: Nepal at risk of rising prices”<\/span><\/a><\/p>\n","protected":false},"author":11,"featured_media":103412,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1391],"tags":[],"class_list":["post-103422","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized-en"],"acf":[],"publishedDateNp":"\u096f \u0915\u093e\u0930\u094d\u0924\u093f\u0915 \u0968\u0966\u096e\u0969, \u0938\u094b\u092e\u092c\u093e\u0930 \u0966\u096f:\u096b\u0966","_links":{"self":[{"href":"https:\/\/english.kalopati.com\/kp_api\/wp\/v2\/posts\/103422","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.kalopati.com\/kp_api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.kalopati.com\/kp_api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.kalopati.com\/kp_api\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/english.kalopati.com\/kp_api\/wp\/v2\/comments?post=103422"}],"version-history":[{"count":1,"href":"https:\/\/english.kalopati.com\/kp_api\/wp\/v2\/posts\/103422\/revisions"}],"predecessor-version":[{"id":103423,"href":"https:\/\/english.kalopati.com\/kp_api\/wp\/v2\/posts\/103422\/revisions\/103423"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.kalopati.com\/kp_api\/wp\/v2\/media\/103412"}],"wp:attachment":[{"href":"https:\/\/english.kalopati.com\/kp_api\/wp\/v2\/media?parent=103422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.kalopati.com\/kp_api\/wp\/v2\/categories?post=103422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.kalopati.com\/kp_api\/wp\/v2\/tags?post=103422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}