On July 18, the Organization of the Petroleum Exporting Countries (OPEC) reached an agreement to increase crude production by 400,000 barrels per day on a monthly basis until interrupted production is fully restored. OPEC is a cartel of 13 countries that produce 29% of the total crude oil in the world. Brent crude prices fell sharply after the announcement. Brent Crude closed at $ 68.62 a barrel on July 19, down 6.75% from $ 73.59 on July 16.

As of July 20, 2021, gasoline and diesel prices have not risen for four consecutive days. This is the longest period without a price increase since May 3. Gasoline and diesel prices changed only twice during the period from March 27 to May 3, during assembly elections in Assam, Kerala, Tamil Nadu and West Bengal.

Will the OPEC deal lead to lower gasoline and diesel prices in India?

Here are four charts that explain this.