Portfolio investors anticipate petroleum prices will remain range bound in the short term so positioning is increasingly focused on expected changes in relative performance among the major crude and fuels contracts.
Oil prices settled lower on Tuesday as traders focused on rebounding crude output in parts of the US, along with rising supply in Libya and Norway, rather than risks to supply posed by conflict in Europe and the Middle East.
Saudi Arabia made two recent decisions that on the surface seem to indicate a steady crude oil market outlook but may point to a ticking up in concern over the state of demand.
According to a poll of 12 experts from brokerages and rating agencies, retail prices of petrol and diesel in India are expected to remain in the current range.