Business Desk. The burden of inflation on your pocket may increase further in the coming days. There is a possibility of increase in the prices of petrol and diesel once again. A recent report by Wall Street’s leading investment banking company Goldman Sachs has created a stir all over the world. After this report came out, the concerns regarding fuel prices have deepened, which is believed to have a direct impact on countries like India. The blockage in the Strait of Hormuz has become the biggest crisis. Goldman Sachs has clearly warned in its report that if the blockage in the supply of crude oil from the world’s most important oil transport route i.e. ‘Strait of Hormuz’ continues like this, then the prices of Brent crude can skyrocket to $ 120 per barrel. Apart from this, the fear of continuous disruption in shipping from the ‘Red Sea’ has also created a big risk of increase in crude oil prices. Experts believe that if the situation remains like this in the global market, then the retail prices of petrol and diesel may increase in India too. Middle East tensions and the current condition of Brent crude However, Goldman Sachs also expects that the situation in the Middle East will improve in the coming time and tensions will reduce. The company estimates that if peace returns to the Middle East, the average price of Brent crude could fall to $80 per barrel in the fourth quarter of this year and to $75 per barrel by next year. Currently, amid the increasing tension between America and Iran and threats from Yemen’s Houthi rebels, the price of Brent crude has again crossed $ 91 per barrel. Meanwhile, a senior Iranian official has informed that Tehran has received a 10-day ceasefire proposal through mediators, which has raised hopes of stopping the conflict. What will be its impact on India and the situation of crude oil imports? India is heavily dependent on imports for its energy needs and the country imports more than 70 percent of its total consumption of crude oil from outside. Due to the fear of supply disruption, India’s total crude oil imports increased to a record 49.3 lakh barrels per day in the month of June. During this period, Russia remained India’s largest oil supplier and imports from Russia alone increased to about 27 lakh barrels per day, which is more than half of the total imports. Apart from this, supplies from Saudi Arabia, UAE, West Africa and Latin America are also strengthening India’s energy security.
Comments are closed.