new Delhi: People who are waiting for the petrol and diesel to be cheap are going to be a big setback. Soon, the prices of petrol are going to go up. If a report says, then petrol prices can cross Rs 80. At the same time, there is a possibility of a fire in diesel, its price is likely to go up to Rs 65. Indeed, the crude oil prices in the international market are around their highest level of 3 years. Crude oil has reached $ 66.5 a barrel for the first time since January 2015. Rising prices of crude oil and the global crisis can cause inflation to hit people. At present, WTI Crude is trading at NYMEX for $ 59.7. Brent Crude is looking at $ 66.5.
Crude oil at a height of 3 years
Crude oil reached $ 65 a barrel in January 2015. The government had cut prices of petrol and diesel earlier this year. In fact, crude oil was $ 55 per barrel at that time, which jumped in June to $ 44. However, crude oil prices have remained steady for the past two months. If, after June 2017, the price of crude oil has increased by 38 per cent. The price of WTI Crude (US West Texas Intermediate) is also around $ 59.7 a barrel. Since June, WTI crude has risen 30 percent. In such a situation, the prices of petrol and diesel are expected to increase rather than cut.
Experts will increase prices
According to senior analyst Ajay Kedia, the prices of crude oil have been consistently fluctuating in 3 years. Now crude is at the height of 3 years, then its direct impact will be on petrol and diesel prices. However, prices may get a bit of support in the dollar index, but the dollar index is not as fast fluctuating. In the last few days, the rupee has become strong, but it is not enough to effect the prices of petrol and diesel. According to Kedia, prices of petrol and diesel may increase by 2 rupees or more in the short term.
Also mention in Nomura report
Nomura says that rising crude prices will also affect India’s economy. The rise in crude prices is expected to increase the fiscal deficit. Prices of petrol and diesel may also be seen. But, the government is capable of controlling it by reducing excise. At the same time, the rise in crude prices could increase the retail inflation by 0.6-0.7%.
Nomura reports also mention this
Crude oil prices may jump in the world due to increased stress in the Middle East the next year, and its impact can also be on inflation. Financial company Nomura has also included war in the Middle East in 10 potentially worst events for 2018. These incidents do not seem to be high, but if they are, they may have an impact on the markets next year. These include the risk of impeachment in America and elections in Italy.
Status is not good in Yemen
Nomura’s analysts say that the recent collision of the Middle East started aggressively, but later it slowed down. They are expected to continue in 2018 and due to increasing tension, there can be a threat to regional stability, which can increase the cost of oil. This includes the problems of Yemen and Qatar. The situation is very bad in Yemen. More than 60,000 people have been killed or injured in civil war in the country. People are facing difficulties due to cholera and famine in Yemen.
Crude will be expensive by increasing tension
Global crude prices are likely to rise due to the tension in the Middle East and its impact will be on global inflation. If Brent crude prices go up by 30 percent from current levels to $ 80 a barrel, then in 2018, the inflation in the US and Europe will increase 0.4-0.9 percent. In Japan, core inflation can exceed 1.5%. If crude oil prices increase, then Russia, Cambodia, Malaysia and Brazil will benefit the most. This will cause damage to India, China, Indonesia, Thailand, South Africa and Turkey.