Crude oil reached the lowest level of eight months, petrol and diesel prices may be cheaper?
Highlights
- Crude oil has come down to $ 90 a barrel after a significant fall.
- Inflation peaked a few months ago
- Finance Minister Nirmala Sitharaman also gave information
Crude Oil Price: Benchmark government bonds have declined 18 percent in the past few weeks due to easing of inflation in the international market and fall in Brent crude oil prices. Basis Points has declined by more than Crude oil prices hit $139 a barrel in March due to the Russo-Ukraine war, the highest level since 2008. After a lot of decline, it has come down to $ 90 per barrel. guess soon Petrol-Diesel There will also be a reduction in prices.
Venkatakrishnan Srinivasan, founder and managing partner of Mumbai-based debt advisory firm Rockfort Fincorp LLP, said that apart from softening crude oil prices, Indian bond indices are expected to join the index very soon. The news has created a positive atmosphere among investors and the trading segment, as the market is now expecting an inflow of over $30 billion in debt securities. As a result, government bond yields have been falling steadily. On May 22, the government had decided to reduce the central excise duty on petrol.
Inflation peaked a few months ago
Inflation was at its peak a few months back. The month of July has seen a huge drop. The CPI had come down to 6.70 per cent in July due to lower food prices. However, the overall numbers are still above the Reserve Bank of India’s (RBI) upper tolerance band for the seventh consecutive month.
Ajay Mangaluniya, Managing Director and Head Institutional, JM Financial said, “If we do not see any shocks and surprises from the inflation aspect, bond yields are expected to move up from here onwards. The resumption of FPI inflows will eventually lead to this month’s growth. G-sec yields may be below 7 years at the end of the year.”
Finance Minister Nirmala Sitharaman also gave information
Earlier this week, Finance Minister Nirmala Sitharaman had said that the 2020 Budget proposal to allow the inclusion of bonds in global indices may not go ahead as fund inflows do not meet desired levels. Srinivasan said the market would still remain positive based on expectations of inclusion in the government bond index. The fall in oil prices will somewhat fuel the positive bond market rally.
Vladimir Putin indicated in clear words
Despite many supportive factors in the market, oil declined on Wednesday. Russian President Vladimir Putin said the country would not supply energy to any nation that supports a planned US-led price cap on the country’s crude. In addition, the Energy Information Administration raised its outlook for global oil demand, while also cutting US supply forecasts.
Latest Business News
function loadFacebookScript(){
!function (f, b, e, v, n, t, s) {
if (f.fbq)
return;
n = f.fbq = function () {
n.callMethod ? n.callMethod.apply(n, arguments) : n.queue.push(arguments);
};
if (!f._fbq)
f._fbq = n;
n.push = n;
n.loaded = !0;
n.version = ‘2.0’;
n.queue = [];
t = b.createElement(e);
t.async = !0;
t.src = v;
s = b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t, s);
}(window, document, ‘script’, ‘//connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1684841475119151’);
fbq(‘track’, “PageView”);
}
window.addEventListener(‘load’, (event) => {
setTimeout(function(){
loadFacebookScript();
}, 7000);
});
,
