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Reversing crude oil cycle is bad for India

Threats of supply disruption caused by political trouble may add to upside pressures due to supply cuts agreed upon by other Opec members and Russia

Devangshu Datta

Ongoing protests in Iran have led to a hardening of crude prices to levels last seen in mid-2015. Threats of supply disruption caused by political trouble may add to upside pressures due to supply cuts agreed upon by other Opec members and Russia. This comes at a time when demand for oil is likely to rise due to growth recovery in the First World. The benchmark Brent contract is trending at $67-plus/barrel while West Texas Intermediate (WTI) is at $60-plus. That’s about $12/barrel more than a year ago. If prices stay at these levels or spike higher, it could put pressure on ...