Raising concerns, credit rating agency, India Ratings (Ind-Ra) in its latest report has said that a change of even $1 per barrel would impact India’s import bill by Rs 6,160 crore, as the country continues to be a large importer of crude oil. India meets over 80% of its oil demand through imports.
The rating agency further noted that oil prices may rebound, if the organisation of the petroleum exporting countries (OPEC) and its allies take decision to hold their supply, and added that Russia and Saudi Arabia are the largest exporters of oil globally and the US produces only about 11.5 million barrels a day.
As per the report, Brent crude oil price, the global benchmark for crude prices, continued its upward trajectory to hit a four-year high of $86.07 per barrel on October 4 this year, as the market grappled with the expected loss of oil supply from sanction-hit Iran.