DMPQ: What is brent crude? What are the impact of rising oil prices on India?

: Brent Crude is a major trading classification of sweet light crude oil that serves as a major benchmark price for purchases of oil worldwide. This grade is described as light because of its relatively low density, and sweet because of its low sulphur content. Brent Crude is extracted from the North Sea and comprises Brent Blend, Forties Blend, Oseberg and Ekofisk crudes (also known as the BFOE Quotation). The Brent Crude oil marker is also known as Brent Blend, London Brent and Brent petroleum.

 

Effect of oil prices :

  1. Will adversely affect the twin deficit and current deficit of the economy which will have spillover impact.
  2. Oil prices are highly vulnerable due to the geopolitical factors and hence they affect our monetary and fiscal policies.
  3. Rampant change in oil prices affect our economy by bringing inflation in our economy and hence growth.

 

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