Crude rises 40% in 2019: How will it impact markets and macros?
Brent crude oil rose above $75 per barrel for the first time in 2019 on Thursday in the wake of tightening sanctions on Iran. As Brent crude prices have surged nearly 40% in 2019 it is is expected to impact India’s economic growth and hurt business growth in this year ahead. Crude oil is one of the critical commodities for India and changes in oil dynamics have repercussions on currency, fiscal math, inflation and financial markets. Increase in oil prices rises risks of fiscal slippage, greater inflationary pressures and lower likelihood of an interest rate cut by the Reserve Bank of India. Mint’s Nasrin Sultana explains how high crude prices may upset macro economy and corporate earnings.