Fears of supply than demand for crude prices to 11 years at the grass roots level.Political crisis in the Gulf and escalated to $ 33 a barrel crude supply on the lower level.Brent crude slid $ 2.16 per cent after 34 has slipped down the barrel.And Brent crude slid $ 2.05 per cent a barrel after trading at 34.33.
Why loose price
Saudi Arabia-Iran dispute bearing
Crude prices fall in Saudi Arabia and Iran continue to see because of a dispute between.Saudi Arabia and Iran became feared by the dispute between that moment between the two in any case.Which aims to cut production of crude oil. Market fears that both their – their level can increase crude production.Because if a production decreased prices of edge will find another country.
Pressure from dwindling demand
With China and India in least demand also see an impact on prices.Experts say if these two countries do not get to see demand in the rest of the countries will not affect demand.Saudi Arabia and Iran dispute within 3 days after crude prices slid 8 per cent to watch.With OPEC countries supply between loss due to possibilities of an agreement are too low.Market fears that lifting the embargo with Iran will increase crude supply in 2016.It is already ovrasaplai, and worse.
What will be the effect
Petrol, diesel may find relief in
Brent prices come down $ 35 on gasoline and diesel prices could relieve. Indian crude basket Oman Dubai tyre crude and Brent crude.Prices fall in December Indian crude basket average was $ 35.95 a barrel.That's where Brett was close to $ 37 price of crude. The price of diesel by oil companies on December 31 1.06 and reduced the price of gasoline was 63 cents.Although its 2 days later the Government raised excise duty on oil. Now Brent records fall and Government excise duty increase is expected from.15 January review, the Government is giving customers took advantage of the cut.
Benefit from the fall in crude economy
Crude declines in extent will benefit enormously from Indian economy. 90 per cent of its India crude import.Public losses in crude import bill has the most impact. According to a rough estimates crude oil slid $ 10 each from a current account deficit equal to 0.5 per cent of GDP falls short.There are 0.1 per cent of GDP Fiscal deficit gets reduced. That's where the Government cut in crude oil with increased duty on your treasure also fills.Increase in excise duty in this financial year the Government nearly 10 thousand crore rupees extra MOP.While the fall in crude oil companies under the burden of recovery even lighter. The burden on Government coffers low government spending increasing scope.Increased government spending in the current sluggish growth to continue. That's where diesel from cheaper.
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