Biznextindia : Crude oil prices has remained volatile since the Russian invasion on Ukraine last week, raising concerns for oil importing countries like India.
While, Brent Crude oil has eased to USD 112.59 per barrel after touching a record high of USD 119 per barrel on Thursday. WTI crude also has corrected to USD 110 per barrel after touching USD 115 per barrel on Thursday.
Meanwhile, the Indian basket has breached the USD 110/barrel on Thursday, a record level in almost a decade. Last time, in 2011-12 the Indian basket had touched USD 111 per barrel.
Sharp rise in Crude price, is likely to upset the Indian government’s fiscal deficit and inflation targets.
If global crude oil prices remain elevated and hover around an average of $100 per barrel, it could dent the governments revenue by 1 lakh crore and inflation will likely increase by 52-65 bps” said note by SBI Research.
The Indian basket of Crude Oil (IB) or Indian crude basket represents a derived basket comprising of Sour grade (Oman & Dubai average) and Sweet grade (Brent Dated) of Crude oil processed in Indian refineries in the ratio of 75.50 : 24.50 during 2018-19. It is used as an indicator of the price of crude oil imports in India. India’s government owned oil companies watch this index while reviewing the domestic Petrol and Diesel prices.