Crude Oil Price / India's planning may fail! Will crude oil hit a 'century' again?

Crude Oil Price: The bugle of war has sounded again in the Middle East. This new conflict between Iran and Israel has created a wave of tension globally. Its latest effect was clearly seen in the Indian and American stock markets today. Also, the biggest shock came in the form of a record rise in crude oil prices.

Meanwhile, the latest report of J.P. Morgan has increased the concern further. According to the report, if this tension continues like this, then by the end of 2025, crude oil prices can go up to $ 100 to $ 120 per barrel. In the current circumstances, this surge in crude oil prices can become a major economic threat to oil importing economies like India.

Danger looming over the supply chain from the Middle East

J.P. Morgan says that if global sanctions on Iran are tightened further or its oil facilities are targeted, it could completely disrupt the oil supply chain of the Middle East. Iran is a major OPEC producer and any disruption can lead to a sharp drop in global oil production. This will have a direct impact on oil prices, which are already on the boil due to rising tensions.

Double blow for India

India imports more than 85% of its total oil needs. In such a situation, the rise in crude oil prices will have a direct impact on the country's economy:

Rise in import bill: Rising prices will increase India's import bill, which will increase pressure on trade deficit and current account deficit.

Effect on rupee and inflation: Due to pressure on rupee and increase in petrol and diesel prices, inflation can also become uncontrollable.

Shock to industries: The cost of transport and manufacturing will increase, which will directly affect industrial production.

Agnipariksha for the government and companies

This situation is a big test for the Indian government to maintain energy security and economic stability. According to experts, the government will now have to work more rapidly on alternative energy sources. Apart from this, it has also become necessary to increase oil storage capacity and secure supply through long term contracts.

Oil companies should work on strategies like price hedging and cost control so that the impact of prices can be reduced to some extent. Also, it may be necessary to show flexibility in the tax structure to provide relief to the general public.

Global recovery will also be affected

This crisis can put a brake on the pace of economic recovery not only in India but the whole world. There is already instability in the global markets, and if oil prices continue to rise, problems like inflation, recession and unemployment will deepen further.