According to Bloomberg, brent crude prices are trading at $62.80, a difference of over $5 on the WTI prices.
Are oil prices headed to break $62 barrier?
Oil prices have fallen nearly 60% since July of last year and this has brought multi-pronged benefits to India. However, oil prices are now inching up again. Is this sustainable and what is the next halt for oil prices?
India Forex, in a report dated April 15, 2015, said, "The crude prices have gained more than 25% in last one month amid the geo-political tension in middle-east. The upward momentum in prices might continue owing to geo-political tensions in supply region and slowing production in US Shale." The prices have gone up 5.7% just in the last week.
On Wednesday, US oil closed at $56.39 a barrel, or at its highest point in this calendar year. This is due to the geo-political tensions in the Middle-East as well as drop in American shale gas production.
source: tradingeconomics.com
The Energy Information Administration (EIA) has warned that the month of May could see US shale gas production fall -- a first monthly decline in nearly four years.
According to Bloomberg, brent crude prices are trading at $62.80, a difference of over $5 on the WTI prices.
India Forex said, "We expect WTI crude Oil prices to go up to levels of $62 -$65, if the prices give a breakout above $55.20 levels, which is the previous top and also the pattern target."
The impact on the Indian economy will be visible if oil prices indeed cross $62 a barrel.
According to International Monetary Fund's (IMF) World Economic Outlook that was released on April 15, 2015, India -- a major oil importer's currency strengthened close to 10% even as currencies of Russia, China, Canada declined.
India rupee could depreciate to 63.50 to a dollar if oil prices continue to move north. The rupee gained strength and closed at 62.36 per dollar on Wednesday, April 15.
India's current account deficit (CAD) has bettered, wholesale inflation is at a multi-year low of -2.33% in March and retail inflation is at a comfortable 5.17% in March and fall in oil prices have played an important role in bringing these numbers down.
The pain-points might come back if oil prices indeed move up and settle over $60 a barrel.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}