Crude Oil Prices Soar Amid West Asian Tensions
New Delhi has witnessed a rapid surge in crude oil prices due to ongoing tensions in West Asia. As of Thursday, Brent crude had reached close to $110 per barrel and WTI crude was near $105 per barrel.
The sharp rise in crude oil prices is raising concerns over its impact on the Indian economy. The country imports approximately 85 percent of its crude oil requirements.
Tarakeshwar Nath Vaishnav, CEO of TNV Financial Services, stated that expensive crude oil has had a direct impact on the Indian currency. The rupee has fallen to a record low of 95.80 against the US dollar due to increased demand for dollars by Indian oil companies.
The Reserve Bank of India is attempting to support the rupee by releasing dollars from its foreign exchange reserves into the market, but sustained crude prices could put further pressure on the currency.