Crude oil prices have surged in early trade on Friday on supply concerns after Houthis stepped up attacks on Saudi Arabia. Brent Crude prices trade past
117.54 dollars per barrel and are nearing 118 dollars per barrel (at the time of filing this copy). On Thursday, the Houthis said they had attacked several sites in Saudi Arabia, including its largest oil refinery, Ras Tanura, the Rabigh refinery and an Aramco facility in Abqaiq, while a Saudi-led coalition said it had intercepted a cruise missile launched by the Houthis towards the kingdom's western region. Experts believe this action around the Strait of Hormuz are keeping oil prices elevated in expectation of a further escalation of the conflict in coming weeks as well as raising supply worries. As far as what this consistent rise in oil prices means for India, Economist and Founder, Nikore Associates, Mitali Nikore told Times Now Digital, "Every 10 dollar on the barrel adds an estimated 12 billion dollars to 13 billion dollars to India's net oil import bill. The uncertainty is the main difficulty, as the results of diplomatic efforts remain in limbo. In March, the Chief Economic Adviser's scenarios put FY27 growth at 7 to 7.4 percent if crude stays near 90 dollars, and at 6.4 percent if it holds at 130 dollars for two to three quarters. India’s strategy on supporting the population without increasing fuel prices has been working - as it has kept growth momentum going. There is a need to start working on debt stabilisation pathways, inflation management, and fiscal sustainability."
