- Crude oil crashed more than 30% even as the IEA revised lower global demand for the first time since 2009
- Every dollar per barrel drop in crude prices reduces India’s oil import bill by ₹10,700 crore on annualized basis
New Delhi: Crude oil crashed more than 30% on Monday in the sharpest plunge since the 1991 Gulf War after the collapse of the Opec+ alliance talks triggered a bloody price war, with both Russia and Saudi Arabia set to flood the market with cheap oil.
Indian markets followed the global equities meltdown. While shares of most domestic oil marketing companies (OMCs) rose, oil and gas explorers saw a severe sell-off. The fall in crude oil prices has placed major consumers such as India at an advantage. India is the world’s third-largest crude oil buyer and the fourth-largest liquefied natural gas importer.
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“Every $10 fall in crude price helps India save $15 billion of external payment or 0.5% of GDP (gross domestic product). Hence, this massive fall in crude price will benefit India’s macro—current account deficit, fiscal deficit and inflation,” said Debasish Mishra, leader, energy resources and industrial products at Deloitte in India.
Source: livemint
