India's crude oil basket average has surged to 123 dollars per barrel, nearing a 15-year high amid elevated global oil prices and geopolitical tensions.
The rise could have implications for domestic fuel prices, inflation, transportation costs and household budgets. As per latest reports, Houthis hit Saudi Arabia's biggest oil refinery with a missile, intensifying their strikes. Saudi authorities did not immediately confirm the strike as per Reuters. Global crude oil prices have spiked once again after the latest attack on the Saudi Arabian refinery sparked fresh supply concerns, Brent crude prices traded at 115 dollars per barrel (at the time of filing this copy). Economist and Founder, Nikore Associates, Mitali Nikore told Times Now Digital, "India's crude basket has averaged about $120 a barrel in October so far, against $96 in the July to September quarter. The rise follows a surge in attacks on tankers around the Strait of Hormuz and Houthi strikes on Saudi Arabia, which have led to an additional risk premium on prices. 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. As it becomes clearer that the basket is closer to the second case, there is a need to start working on debt stabilisation pathways, inflation management, and fiscal sustainability." In fact market experts also believe crude prices are a big risk for the stock market. India imports approximately 85 percent to 90 percent of its crude oil requirements, therefore analysts believe higher crude rates hurt input costs of all companies, margins, their earning profitability and that in turn weighs on the stock market.
