new Delhi. Since the beginning of the year 2022, inflation and the movement of the stock market have worsened. Not only India, but the economy of the world is slipping on the rising crude. Crude oil has become costlier by 62 percent in the last one year.
Ajay Kedia, director of Kedia Advisory, says that this year itself, there has been a 20 percent increase in crude and it has reached the high of 7-8 years. Crude oil is expected to become more expensive due to rising tensions between Russia and Ukraine and the apathy of the Organization of the Oil Producing Countries (OPEC). Experts say that at the moment there is no relief from expensive raw materials and in the coming time it can go beyond $100.
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Impact on India’s economy
Expensive crude oil has an impact on the economy of the world including India. If crude rises by $10, the growth rate will slow down to 0.35 percent. Not only this, it affects the import bill and on paying it in dollars, the rupee becomes weaker. On the other hand, expensive fuel increases the cost of freight and also increases inflation in the retail market.
The shadow of oil on the stock market too
Expensive crude oil also has a big role in the ups and downs in the stock market this year. When there is a rise or fall in crude, there is a direct effect on 40 to 50 stocks. This puts pressure on the stocks of battery makers, oil companies, aviation companies, tyres, cement, logistics, steel and consumer products.
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OPEC’s reluctance to increase production
The Organization of Oil Producing Countries (OPEC+), including Russia, refused to produce additional crude after the meeting on Sunday. However, in the meeting held on February 2, OPK had talked about increasing oil production by 4 lakh barrels per day. But, the ministers of Arab countries shrugged off saying that now the risk of epidemic is decreasing and economies are starting to open up.
Tags: Crude oil prices, Indian economy
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