Brent crude rose as much as 3.1% on Wednesday to $77.20 per barrel, its highest level since November 2014. Photo: BloombergNew Delhi/Mumbai: India sees a greater probability of global crude oil prices remaining high for a longer period, a scenario that threatens to dent growth and fan inflation in Asia’s third-largest economy. The government will have to watch crude prices before preparing any policy response, a finance ministry official told reporters in New Delhi, asking not to be identified, citing rules. Oil is India’s biggest import and elevated prices along with a weaker rupee will widen the trade deficit, fuel imported inflation and squeeze government finances. With India importing more than two-thirds of its crude requirements, the weakness in the rupee will contribute to a deterioration in its current-account deficit.

Source: Mint May 09, 2018 12:45 UTC