Global crude oil prices have started to cool after flaring briefly 10 days ago to above $139 per barrel. Brent crude has now settled below $100 per barrel — as the market has been rattled by a resurgence of virus cases in China, the world’s biggest crude importer, and is also awaiting the outcome of fresh Ukraine-Russia talks.

Authorities across China are trying to stem the spread of the country’s worst Covid-19 outbreak in two years, putting millions of people in lockdown, curbing transport and shutting factories. The stringent measures, reports said, would further strain global supply chains impacting everyone from manufacturers of telecom, auto and sectors.

Indian oil refiners have not raised petrol and diesel prices yet. The latest CPI (consumer price index) inflation of 6.07 per cent in February has forced the government to hold off on a price rise as it could stoke inflationary pressures by raising transportation costs for industry.

The Centre was keeping a close watch on evolving geopolitical developments and would make “calibrated interventions” to keep fuel prices under control, minister of state for finance Pankaj Chaudhary told the Rajya Sabha on Tuesday.

India relies on overseas purchases to meet about 85 percent of its oil requirement, making it one of the most vulnerable in Asia to higher prices.

“The fall in crude oil prices is certainly a welcome sign for oil companies,” a senior official said.

“They were losing Rs 12-13 a litre, without considering marketing margin, on sale of petrol and diesel. This will now come down.”

International oil prices were around $81 when the companies hit the freeze button on November 4.