DNA Money Edit: Fall in crude oil prices brings solace

Brent crude oil has now dropped below $80 a barrel. The fall comes at a time when the demand growth slows despite concerns that renewed US sanctions on Iran's oil industry from November could tighten up supplies.

Trade wars and weakening currencies seem to have hit the demand, not letting the price fall drastically though. It has already led to a trimming of the annual forecasts and there are chances that they could be cut further.

Both the Organization of Petroleum Exporting Countries (Opec) and the International Energy Agency (IEA) said demand would grow at a weaker rate than initially anticipated this year and next. The IEA had earlier warned that the rally in prices could damage the global economy.

Meanwhile, India, reeling under rising retail oil prices, is looking up for some solace from Saudi Arabia, which is its second-biggest oil supplier behind Iran. The middle-east country said it would meet any shortfall that may arise out of the sanctions on Iran.

On its part, India, the world's third-biggest oil importer, is facing record high retail prices after international crude price soared and rupee depreciated against the US dollar.

Saudi Arabia's statement that it is keen to invest in India's fuel retailing and petrochemical business is indeed a positive step. Will Saudi Arabia be able to assure India of a price stabilisation? That is vital for the country.