As India continues to be a large importer of crude oil, a change of even USD 1 per barrel will impact the country’s import bill by Rs 6,160 crore, says India Ratings (Ind-Ra).
According to the ratings agency, if the organisation of the petroleum exporting countries (OPEC) and its allies decide to hold their supply, oil prices are likely to rebound.
“This will increase India’s import bill as it meets over 80 per cent of its demand through imports, and a change of even USD 1 per barrel will impact the country’s import bill by Rs 6,160 crore,” it said.
According to Ind-Ra, Brent crude oil price, the global benchmark for crude prices, continued its upward trajectory to hit a four-year high of USD 86.07 per barrel on October 4 this year, as the market grappled with the expected loss of oil supply from sanction-hit Iran.
From mid-October 2018, however, an increase in supply led to a gradual decline in brent crude oil prices. Read More
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