World in fear of war, crude oil prices soaring; Fuel prices may rise
Concerns sown around the world by the Ukraine-Russia conflict are also pushing the stock market into a deep crisis. Meanwhile, global crude oil prices rose sharply. The price of Brent crude oil is close to $ 100. Russia supplies about a third of Europe’s fuel. Therefore, a war-like situation is likely to push up crude oil prices further.
Six years on, crude oil prices are soaring. Oil prices hit $ 100 a barrel after rising in September 2014. In the last few days, the global stock market has been dragged down by the fear of war. Its impact was felt in India as well. If crude oil prices rise further, petrol and diesel prices are likely to rise in the country.
It is believed that the fuel price hike is due to the ongoing assembly elections in various states. Russia accounts for 10% of global oil production. Going forward with the war, therefore, is likely to reduce crude oil availability if global sanctions on Russia are strengthened.
India buys very little fuel from Russia. However, declining global availability and rising demand for crude oil will not benefit India. Oil prices in India have remained unchanged for more than 100 days. If oil prices rise in 2017, it will also lead to inflation. The Russia-Ukraine war situation is also a headache for state and central governments as it will affect economic activity.
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