CRUDE OIL SWINGS

Business Today - - CONTENTS - - Apra­jita Sharma

For In­dia, the slump in crude is pos­i­tive as it will lower the im­port bill and trim the fis­cal deficit

A DRA­MATIC FALL in Brent crude to $ 59 per bar­rel is as sur­pris­ing as its rise to $ 86 per bar­rel in Oc­to­ber. Just as pro­jec­tions of oil at $ 100 per bar­rel didn’t hold wa­ter, pre­dic­tions of $ 50 per bar­rel also seem un­likely. Saudi Ara­bia re­cently made it clear that OPEC and al­lies need to slash out­put by at least 1 mil­lion bar­rels a day from Oc­to­ber lev­els to avoid a sup­ply glut. Rus­sia is com­fort­able with crude prices at above $70 per bar­rel. For In­dia, the slump in crude is pos­i­tive as it, along with re­cov­er­ing ru­pee, will lower the im­port bill and in turn trim the fis­cal deficit. But the an­nual av­er­age of Brent crude at $73 per bar­rel is still higher than RBI’s FY19 fore­cast of $ 68 per bar­rel. All eyes are now on OPEC’s De­cem­ber 6 meet to get some clar­ity on crude oil tra­jec­tory.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.