Day after 3-year high, global oil prices cool to below $90 per barrel

NEW DELHI: Global oil prices cooled to under $90 a barrel on Tuesday – a day after rising to a three-year high of $120 – following US President Donald Trump’s comment that the Iran war may end soon, amid govt’s claim that India was now securing more quantities of crude from non-Gulf sources.Officials said supplies of crude from non-Hormuz Strait routes had increased drastically in the last few days and India was now getting nearly 70% of its requirements from other areas, up from 55% 10 days ago. Although supplies are not near the pre-conflict level, officials said, more oil was flowing from the US and Venezuela, apart from through spot purchases, they said.India is banking on improving supplies, especially amid reports that Trump was considering easing sanctions on Russia, the largest source of crude for India in recent years.Agencies reported that Trump and his Russian counterpart, Vladimir Putin, discussed the military conflict in West Asia and prospects for peace in Ukraine on Monday, hours after the latter warned that a global energy crisis may threaten the world economy.Saudi Arabia’s top oil exporter Aramco also said there would be “catastrophic consequences” for the world’s oil markets if the Iran war continued to disrupt shipping in the Strait of Hormuz. The UAE’s largest oil refinery closed on Tuesday after a drone attack.Oil markets appeared less nervous after the US president’s comments on Iran, with benchmark Brent hovering around $88 a barrel. Amid the spike on Monday, the Indian basket had crossed the $120 level, over 21% higher than Friday’s $99.12. The critical artery, which connects Persian Gulf in the west with Gulf of Oman and Arabian Sea to the southeast, saw more than 140 vessels transiting before the conflict, carrying roughly 20% of the world’s oil shipments every day.