Quote on Crude Oil price decline by Rajeev Sharan, Head of Research, Brickwork Ratings
Below the Quote on Crude Oil price decline by Rajeev Sharan, Head of Research, Brickwork Ratings
"Crude has eased over the last few days, with Brent slipping back towards USD 101 a barrel from close to USD 109 in mid-September, as the supply picture improves. Two things are driving the decline: oil flows through the Persian Gulf are recovering steadily, and OPEC+ has kept its output quotas unchanged, which together have taken some of the war-risk premium out of the market. Looking ahead, if supply keeps normalising and there is no fresh flare-up, prices are likely to drift gradually lower towards the low USD 90s, though lingering US-Iran tensions keep the risk two-sided. For India, this is a welcome relief. A softer crude price eases pressure on the import bill, the rupee and inflation, and gives the RBI a little more breathing room. Still, with Brent near USD 100, this is easing rather than an all-clear, and a durable move below USD 90 would be the real relief."
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