Brent crude oil prices remain above $93 per barrel. However, it has seen a decline of 1.66% today. Nevertheless, Brent crude does not appear to be coming down below the psychological level of $90 per barrel. Economic experts are expecting this to have a tremendous impact on the Indian economy as well.
Let us tell you for information that India imports 85% of its crude oil from abroad. The largest part of this is from Brent crude oil. Brent crude oil is the basket from which India imports most of its crude oil. However, now India has tried to diversify its crude oil imports more. However, it does not seem to be getting much success.
Brent crude oil remains above $93 per barrel
Brent crude oil prices are currently seeing a decline of 1.66%. Due to the ongoing crisis between Russia and Ukraine, it is seeing a lot of ups and downs. Earlier, Brent crude oil had reached its 7-year high. Brent crude oil prices once reached US $ 96.48 per barrel. Which was its highest level since 2014.
Brent crude prices have been affected the most by the ongoing tension between Russia and Ukraine. As soon as there is any big news of tension between Russia and Ukraine. Brent crude prices reach their all-time high. This has been happening continuously for the last few days. At present, the price of Brent crude remains at the level of $ 93.24 per barrel. Which is very expensive for India. Earlier, in its budget, India had expected the price of Brent crude oil to be around $75 per barrel. However it is much more than that.
Impact of crude oil prices on Indian economy
If Brent crude oil prices remain above $90 per barrel, then it is going to have a negative impact on the Indian economy. For information, let us tell you that in the budget, the government has estimated the prices of crude oil around $ 75 per barrel. It is more than that. Experts are saying that if the tension between Russia and Ukraine increases, then the price of Brent crude oil can go up to $ 120 per barrel or more.
The Government of India has set a target of taking a loan of Rs 120000 crores in the budget. This goal of the government may also be affected. If Brent crude oil continues to remain expensive, the government may have to borrow more. This would mean that the fiscal deficit of the government would go out of control. Presently India’s fiscal deficit remains above 6%. Which is a matter of concern.
OPEC countries have failed to increase crude oil production
OPEC, a group of crude oil producing countries, announced an increase in the production of crude oil. However, so far these countries have failed to do so. Earlier, countries like America and India had also extracted crude oil from their strategic reserves. However, this attempt of his also failed. Because this cannot be done for a long time.
On the other hand, the prices of petrol and diesel in the US have also reached their highest level. Petrol and diesel prices in California, USA, have reached the highest level in US history. US SAIL oil production is also not increasing. Let us tell you for information that America produces crude oil from rocks. However, there is a steady decline in this too.
Due to this lack of demand and supply, the prices of crude oil are also going upwards. This trend may continue in the coming times as well. According to experts, the price of crude oil can go above $ 120 per barrel in the coming time.