look news india
News India Live, Digital Desk: Amidst the ongoing tension in the Middle East, a big relief news has emerged for the global economy. us President donald trump By Israel, Iran and America two weeks between Ceasefire After the proposal was made, there has been a huge decline in the prices of crude oil in the international market. Crude oil prices immediately after this announcement 15% This is the biggest decline in recent months.
Why did crude oil prices fall?
The reason behind this huge fall in crude oil prices is mainly believed to be geopolitical relief and ease of supply:
Armistice proposal: President Trump has suggested a two-week ceasefire through mediation. This indicated to the market that important trade routes like the ‘Strait of Hormuz’ could remain safe.
Worries about supply reduced: There was a fear of disruption of oil supplies due to the possibility of direct conflict between Iran and Israel. The news of ceasefire has reduced these fears, leading to a ‘correction’ in prices.
Brent crude below $94: After this fall, the price of Brent crude oil in the international market 94 dollars per barrel Has fallen below the level of.
What will be its impact on India?
India imports about 85% of its crude oil needs, so this decline is no less than a ‘booster’ for the Indian economy:
Relief in petrol and diesel prices: If the prices of crude oil remain stable at this level, then in the coming days Petrol and diesel prices maybe less.
Control on inflation: Due to cheaper oil, the cost of transportation (freight) reduces, which directly impacts the prices of fruits, vegetables and other everyday items.
Rupee against dollar: Reduction in crude oil import bill will reduce India’s trade deficit and strengthen the rupee.
Opinion of market experts
Market analysts believe that this decline may also be ‘temporary’. If no permanent peace deal is reached within two weeks, prices could jump again. At present, global markets have strongly welcomed Trump’s move and investors have heaved a sigh of relief.