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Oil portents: Are we headed for another price shock and economic shake-up?

If forecasters are right and oil rises not just to $100 but perhaps $120 a barrel, trade gap, inflation, the rupee's external value and economic growth may all come under pressure, writes T N Ninan

oil, oil prices, brent crude, oil crisis, currency depreciation, iran oil crisis, global oil, oil firms, economy
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T N Ninan
Brent crude was ruling near $120 per barrel when Narendra Modi became prime minister in mid-2014. It fell to a low point of $29 in January 2016, before climbing back up. A year ago, the price had crossed $50, and by December was over $60. In May, it crossed $70, and is now past $80. There is no shortage of forecasters who expect it to cross $100 once the Iran sanctions kick in. Some see a peak price of $120 in 2019. If that happens, we will be back where we were. With the rupee having fallen against the dollar
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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First Published: Sep 28 2018 | 5:14 PM IST

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