Crude oil prices retreated on Monday after recently reaching their highest levels since May. Brent crude was reported near US$108 a barrel after falling by about 2%, with expectations of increased Russian fuel exports providing some relief to the supply outlook.
The decline followed a US decision to waive certain sanctions and tariffs on Russia, which could allow more fuel to enter the global market. However, the easing in prices has not removed supply risks. Attacks affecting shipping and energy infrastructure in the Middle East, including concerns around the Strait of Hormuz, remain important factors for crude prices. For India, sustained high oil prices can increase import costs and place pressure on inflation and the rupee.
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