If oil prices go down, indian economy will die!!
Petrol diesel is the only source of revenue for the governments to shore up the economies that have been hit by the corona crisis. That's why the Modi government is charging Rs 75 per liter petrol to Rs 120 and charging people too much. She is filling her coffers by beating the common man. As the prices of crude oil have gone up due to the economic recession, the prices of petrol and diesel have been increasing here.
The price of a barrel of crude oil, which reached 142 dollars due to the Russia-Ukraine war, fell to 100 dollars by Tuesday. But if the recession fears are true, the price of a barrel of crude oil is likely to fall to 65 dollars by the end of this year and 45 dollars by december next year, according to international brokerage firms.
But this is possible only if the major oil producing countries 'OPEC' and russia do not cut oil production. But if they cut, there is no chance of reducing the prices.
Demand for oil has fallen on recession fears. Supply disruptions added to this. Russia's oil and gas exports have been hampered by US and european sanctions. As EU countries are not, russia is currently exporting most of its oil to india and china at discounted prices.
According to Citi's estimates, if the price of a barrel of oil drops to 45-65 dollars, the indian economy will get a big relief. 85 percent of our oil needs are imported. Whenever the oil sector rises, the indian economy is subject to severe tides.
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If the price of barrel oil comes down to 45-65 dollars, there is a possibility that the indian economy will get out of recession easily. Due to the fall of the rupee, the indian economy is likely to recover easily from the impact of recession. It is expected that the fall of the rupee will be stopped and purchases by FPIs will pick up.
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