Donald Trump also pressed oil prices

Copyright © HT Digital Streams Limit all rights reserved. Operate a Madhavan 2 min Read 08 Apr 2025, 05:30 AM Last week, oil prices dropped sharply after US President Donald Trump announced his reciprocal rates and China again with its own tariff increases retaliation. (Bloomberg) Summary in the space of just 12 months has dropped Brent -Ru by as much as 29%. It’s not just the stock markets that collapse after US President Donald Trump imposed massive rates and lit a trade war. Crude oil also dropped to a low of the year. How is the future for oil and its impact on economies like India? How did oil prices move? Last week, oil prices dropped sharply after US President Donald Trump announced his reciprocal rates and refuted China again with its own tariff increases. Brent -ruol criterion fell 11% on Friday to close $ 64.62 a barrel. The decline continued on Monday, and it was seen that the commodity was trading at lower than $ 63 levels-a four-year-old layer. On April 1, it traded at the $ 69 level. The recent sharp drop was preceded by a year of gradual drop in prices. Brent Ru on early April 2024 changed the hands of $ 92 a barrel (see map). In the space of just 12 months, it fell by as much as 29%. Read also | Will FY26 be the year of the Indian consumer? What caused the fall in prices? It is a double whammy, with both the demand and supply sides that will get a hit. Trump and his rates have unleashed the possibility of a full -fledged trade war that threatens global economic growth. The US can slip into a recession. The International Energy Agency (IEA) predicted 103.9 million barrels per day (BPD) at 103.9 million barrels per day in March 2025. It looks optimistic now. IA originally estimated the oil supply at 103.3 million pd. But it was before OPEC+ (the organization of Petroleum Exporting Countries) decided to increase production from May. Trump has also ensured that US oil production is at its peak. Read also | Bumpy: Impact of Karnataka HC ban on bicycle taxis What are the prospects in the short term? IEA says the global oil supply will exceed demand by almost a million BPD this year. The question for demand provision is of such a nature that any revival in oil prices looks remote. The Global Energy Watchdog also warned that macroeconomic conditions have deteriorated over the past month as trade voltages between the US and other countries have increased. How does it affect India? Low oil prices are obviously good news for India as it imports 85% of its oil needs. A lower import account will, in turn, improve the trading balance or current account deficit (CAD). Lower CAD will ensure that the rupee does not weaken further. Low oil prices, if transferred to consumers, will reduce inflation. It will also facilitate government finances by pruning the fuel subsidy and reducing its loans. If the government lends less, it is the way for interest rates to decline. Read also | Mint Primer | Clear signal: How equity agreement for VI can play, will consumers probably see a fuel price reduction? The sharp drop in the price of crude oil has increased the expectations of a fuel price reduction. Retail fuel prices were last reduced in March 2024, just before the lure Sabha election. But the government on Monday increased the excise tax on gasoline and diesel by £ 2 a liter to take advantage of falling oil prices and to increase extra income. Increasing the excise tax will be worn by oil companies and will not be passed on to consumers. The Petroleum Minister indicated that consumers should wait a little longer for a price reduction. Catch all the industry news, bank news and updates on live currency. Download the Mint News app to get daily market updates. More Topics #trump #donald Trump #Oil #crude Oi #crude Oil #crude Oil Prices #Primer #Stock Market #Stock Markets Mint Specials