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Crude Oil Prices – Global Trends and Impact on India

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Crude Oil Prices – Global Trends and Impact on India

Date Apr–June 2018
Author Ajay Marchanda
Publication Name The Federation of Indian Petroleum Industry (FIPI)

Abstract

The prices of crude oil have experienced significant volatility globally over the past decade, particularly during the last five years. Oil prices touched a high of USD 147 per barrel in 2008 before declining sharply as the global economy entered a recession and demand weakened.

Prices subsequently recovered and continued to rise until 2012, remained relatively stable at around USD 100 per barrel until 2014, and then declined again to an average of approximately USD 43 per barrel in 2016. Thereafter, prices resumed an upward trend, reaching nearly USD 80 per barrel in 2018.

This paper examines the factors contributing to global crude oil price volatility, provides forecasts for the next two decades, analyses the impact of oil prices on inflation, GDP and related economic indicators, and explores the options available in the Indian context.

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