Just when it looked like oil prices cooling off had offered some respite to India’s macros, Organisation of the Petroleum Exporting Countries (Opec) decision to cut back production by 1.2 million barrels per day is threatening to heat things up again.
Last week, Brent crude, the international benchmark for oil prices, surged 4.9% to $63 a barrel in early morning trade, right after the announcement of cutback by Opec and Russia. Most energy experts, however, don’t see crude prices running away like in the past.
They believe the current market situation is very different, with slowing oil demand due to weak global economic growth and the emergence of several alternative energy sources. Read More