An oil shock for India in the new decade – a blip or a sign of things to come?

The festivities over the start of the new year and the new decade are far from over and a confluence of factors, mostly external, has once again exposed the weakest underbelly of India’s oil economy – threat of supply disruption from Gulf, made worse by a stagnant domestic output, jacking up fuel prices for consumers and taking the government’s fiscal arithmetic for a ride.

The oil economy prospects, which are very closely tied to the performance on the larger economic front, are facing a nearly unending list of concerns — volatile crude oil prices fanned by escalating conflict in the Middle-East, hike in tanker rates due to the introduction of new maritime fuel specifications, concerns over supply disruptions during a time when the Organization of Petroleum Exporting Countries (OPEC) is implementing steeper oil production cuts, to name a few.

ET Energy World
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