Shock: Crude oil is about to reach $100 after eight years, the growth rate will fall, your pocket will be loosened by inflation

Shock: Crude oil is about to reach $100 after eight years, the growth rate will fall, your pocket will be loosened by inflation

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New Delhi. Crude oil is about to reach $100 in the international market. This will be the first time since 2014 that crude oil is going to reach this level. After the removal of restrictions related to the epidemic worldwide, the demand for crude oil is increasing rapidly in business activities. Due to this, there is a possibility of further rise in crude oil.

The rise in crude oil will not only hit the growth rate of the economies of the world, but inflation will also increase wildly. This will have a direct impact on the common people. Their pockets will be affected due to inflation. Apart from this, it is worrying for central banks around the world along with the US Federal Reserve as banks are still trying to bail out the economy from the pressure of the pandemic. The finance chiefs of the G-20 are going to meet this week for the first time this year. In this, inflation is the main concern.

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Inflation will be more than 7 percent
The impact of crude oil prices on the economies will be greater than before. There will be an increase in the bills of both companies and consumers. Along with food, the prices of transportation and other things will increase. According to the shock model of Bloomberg Economics, by the end of this month, inflation in the US and Europe will increase by about half a percent if crude oil reaches $100. JP Morgan Chase & Co says that a rise of up to $ 150 a barrel will almost stop global growth. Will push inflation to more than 7 percent.

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Economic growth rate will decrease by one percent
Crude oil has risen to $ 30 per barrel since last year. At the beginning of 2021, the price of crude oil in the global market was around $ 70 per barrel, which will reach $ 100 per barrel by the end of this month. Generally, a rapid $10 in crude oil leads to a 0.33 percent decline in the growth rate of the economy. By the end of this month, an increase in crude oil by up to $ 30 a barrel will reduce the growth rate by about one percent. Its all-round effect will be seen.

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Supply pressure will increase, emerging economies will be affected the most
Oil, coal and natural gas provide more than 80 percent of the world’s energy. According to consultancy Gavekal Research Ltd, the cost of one of these is now more than 50 per cent higher than it was a year ago. Energy shortages have also added to the ongoing pressure in global supply chains, driving up costs. Goldman Sachs Group Inc. estimates that a 50 per cent increase will push headline inflation up an average of 60 basis points, with emerging economies most affected.

Tags: Crude oil, Crude oil prices, Petrol and diesel, Share market, stock market

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