It was meant to be a short, sharp shock. Instead, OPEC members are facing a long, slow grind with no end in sight. The deal reached with several non-OPEC countries in 2016 to cut oil supply and drain excess inventories was meant to last just six months.
Foreign investors have pumped in nearly Rs 4,800 crore into the Indian capital markets in the last five trading sessions, after pulling out hefty funds in October, amid cooling global crude oil prices and rising rupee.
Crude prices tumbled last week, with WTI ending down 2.3 per cent and Brent 2.7 per cent.
Crude prices ended the week gone by on a positive note, but that was not enough to offset the drop of more than 4 per cent.
Brent crude prices have gone up by around 22 per cent since the start of the year. Rupee has also depreciated against the dollar by around 15 per cent and petrol prices in Delhi have increased by around 18 per cent.
Escalation in global trade protectionist measures, as well as high crude oil prices will continue to exert pressure on the Indian rupee, experts said on Saturday.
States are likely to gain an additional Rs 37,426 crore in revenue in the current fiscal on the back of surge in oil prices and better tax collection due to the GST, says a report. According to SBI Research, the impact of GST on tax revenue is minimal except in a few states.
Pinning hopes on further reduction in global crude oil prices, economic affairs secretary Subhash Chandra Garg on Thursday indicated that the retail prices of petrol and diesel could see a further decline.
Foreign investors pulled out nearly Rs 18,000 crore (USD 2.65 billion) from capital markets so far this month primarily due to surge in global crude prices and heightened US-Iran tensions.
Crude oil prices may rise further in the coming months, following which India’s current account deficit will be around 2.4 per cent in 2018-19, says a Goldman Sachs report.