Commodities
Brent Crude Surges Above $100 as Tensions in West Asia Escalate
The price of Brent crude oil has surged above $100 per barrel, causing concern for India's economic growth. The oil price increase has risen by over 12% in the past week due to worsening tensions in West Asia.
Economist Sunil Sinha estimates that every $10 rise in international oil prices may shave about 20-30 basis points off GDP growth. This means that if oil prices continue to rise, India's economic growth rate could be impacted as early as the coming quarter.
The higher oil prices pose a risk not just for fuel costs but also for India's import bill and inflation. A larger import bill can increase pressure on the current account, making it challenging for India's economy.