Assumptions made in the Union Budget or in RBI policies were worked out estimating crude prices in the $65-70 range. “At least for a month or so, we can expect upward volatility in oil prices,” he said. You can expect OMCs to resume hiking fuel prices a day or two after elections,” he said.Modi has a long election schedule lined up for the year culminating in the 2019 general elections. The US is reported to have deployed oil rigs at record levels and its production is already close to Saudi Arabia.“Beyond $70-75 barrel, there would deflationary signs which may pull down crude oil prices. I expect crude prices to drop in 2-3 months,” Chokkalingam said.

Source: Economic Times May 09, 2018 08:16 UTC