The decline in crude and possible ban on Iran, India has the advantages
Lifted economic sanctions against Iran's biggest oil producer in the Chinese market pressure due to global crude prices fell to new lows is 12 years.WTI crude fell to $ 29.15 per barrel has come.Which is the lowest since 2003, the Brent crude also came down to 27.67 dollars per barrel.Brent crude has fallen by more than 2 percent.
Restrictions on Iran leaves the increase in exports
To remove sanctions on Iran on Saturday said a formal announcement after the Iranian oil exports may increase.In 2011, when economic sanctions were imposed over Iran exports around 20 million barrels per day at that time was his.The Iranian oil minister announced about increasing exports. Iran's deputy oil minister said his country will soon 5 million barrels of daily exports Raising be reached.
Gulf markets fall sharply
After removal of the ban Iran crude, considered in terms of the Gulf stock markets fell heavily.Revenue from crude gained 80 per cent this year to the Gulf countries is quite poor.In January, crude prices fell by 20 per cent in Haksort position and is expected to increase pressure on the crude oil prices could rise.
20-25 dollar price will
Ajay Kedia, head of Kedia Commodities told by the ban on Iran after the fall in crude signs.In the next 1-2 months, crude could fall to $ 22-25. Crude's decline will save India's foreign exchange.Trstlain Vice President Rajiv Kapoor crude in the next two days, can come at their lowest level.The market is likely to see a sharp fall in the next few days. Every $ 1 in a savings of Rs 10,000 crore to India.India's trade deficit will decline. In the next 1-2 days, the 25 dollars per barrel crude could come.
Economy benefit from the decline in crude
Indian economy will benefit from the decline in crude. 90 per cent of India's crude imports are needed.The government deficit is the greatest impact of the crude oil import bill. According to rough estimates, every $ 10 drop in crude oil current account deficit equivalent to 0.5 percent of GDP is reduced.The fiscal deficit equivalent to 0.1 percent of GDP is reduced. The government raised the duty on crude oil with cut fills their coffers.The government in this fiscal year increased nearly 10 thousand crore in excise duty is also to raise.The decline in crude oil companies under the burden of recovery is significantly reduced.Reduce the burden on the state exchequer due to the government spending has become scope.Increased government spending in the current downturn may continue to grow.
Industry would benefit
Many sectors benefit from the decline in crude prices. In the automobile sector, plastic industry, chemicals and resins industry, paints, and include footwear industry.The price of crude oil from declining raw material costs in the sector is declining and margins are growing.In the series, including the aviation sector. Following reduction in jet fuel margins of airlines is expected to grow to become.
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