Suryaa Business Desk: International crude oil prices have experienced a significant decline, with the Brent crude benchmark falling below $98 per barrel. This marks the sharpest weekly drop since the 2020 pandemic-era crisis, driven by a wave of selling in the oil market over the past week.
The downturn is primarily attributed to fears of a global economic slowdown and expectations of reduced consumption. Industrial activity in major economies, including the United States, China, and European nations, has slowed, while high interest rates have created uncertainty regarding oil demand. Additionally, lower-than-expected domestic consumption in China and a strengthening dollar index have impacted oil purchases. Despite production cuts announced by OPEC+ countries, experts note that supply constraints have been unable to offset market recession fears.
For India, a major importer that sources over 85 percent of its crude oil from abroad, this price decline offers potential relief. A reduction in the import bill could help control the Current Account Deficit (CAD). Furthermore, economists suggest that lower transportation costs may help ease inflationary pressures. Market participants are hopeful that if this international price correction continues, it may lead to a reduction in domestic petrol and diesel prices.
