NEW DELHI: The price of the Indian oil basket fell below $100 a barrel on Friday for the first time since March 6, as global crude prices cooled by 11% over the past week amid reports that the US and Iran may have reached a deal and that Strait of Hormuz could soon reopen for smooth movement of shipments.The cost of crude for Indian refiners dropped to $97.52 a barrel on Friday, while global benchmark Brent crude fell to $91.12 a barrel. While the decline in crude prices is expected to reduce input costs for refiners, it may not fully eliminate under-recoveries on petrol, diesel and LPG, which are estimated at Rs 550 crore per day. The sharp depreciation of the rupee will eat up some of the gains of lower crude price.The war in West Asia had disrupted the key energy route linking the region with global markets, squeezing oil and gas supplies. The Indian oil basket rose from an average of $69 a barrel in Feb to $114.5 in April, and is averaging $106.83 a barrel in May.
