InvestorQ : Will the sharp fall in oil prices benefit the Indian economy as it imports a lot of oil each day?
Tisha Malhotra made post

Will the sharp fall in oil prices benefit the Indian economy as it imports a lot of oil each day?

Answer
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Moii Chavate answered.
7 months ago


The price of Brent Crude corrected more than 4% to a level of $56/bbl even as WTI dipped below the $50/bbl mark once again. Crude oil was largely reacting to the sharp fall in Chinese demand for oil. China remains the major consumer of oil and the oil demand in China has fallen by more than 25% as factories across the Wuhan and Hubel province have been shut down. Also, the usage of cars in China has come down sharply impacting fuel demand. OPEC and Russia have decided to put off their proposed supply cuts as they see little hope in holding prices when the demand has weakened in the world’s largest oil consumer. While weak oil prices is normally good for the Indian current account deficit and the rupee value, it also signals a slowdown in global trade and GDP growth.