• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 15 hours Science: Only correct if it fits the popular narrative
  • 8 hours Crazy Stories From Round The World
  • 18 mins EU has already lost the Trump vs. EU Trade War
  • 18 hours Iran Burning: Shock Gas Price Hike Triggers Violent Protests After Subsidy Cuts
  • 8 hours Impeachment Nonsense
  • 1 day Do The World's Energy Policies Make Sense?
  • 10 hours Everything You Need To Know About Trump
  • 1 day What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 2 days China's Renewables Boom Hits the Wall
  • 19 hours Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 2 days Forget out-of-date 'dirty oil' smear, Alberta moving to be world's cleanest oil industry
  • 2 days Water, Trump, and Israel’s National Security
  • 1 day Who writes this stuff? "Crude Prices Swing Between Gains, Losses"
U.S. Shale Will Soon Produce More Oil Than All Of Russia

U.S. Shale Will Soon Produce More Oil Than All Of Russia

Despite growing pessimism in the…

Oil Prices Fall On Bearish EIA Inventory Report

Oil Prices Fall On Bearish EIA Inventory Report

Oil pared gains on Thursday…

India’s Currency Hits Record Low Vs. Dollar On Rising Oil Prices

Dollar Rupee

India’s currency, the rupee, hit a new record low against the U.S. dollar on Thursday on the back of rising oil prices, end-month demand for dollars, and concerns about the health of the emerging markets after the Turkey crisis.

The rupee slumped to an all-time low of 70.81 against the dollar, beating the previous record low from just yesterday—70.475, for a total 10.97-percent depreciation since the beginning of this year.

Rising oil prices and the weakening currency have already created a perfect storm for India, where oil demand growth has been surging, but the higher oil prices are increasing the country’s spending on crude oil imports, which account for 80 percent of Indian oil consumption.

As early as in May this year, India’s Petroleum Minister Dharmendra Pradhan pleaded for “stable and moderate” prices with Saudi Arabia’s Energy Minister Khalid al-Falih, as Brent Crude prices briefly broke above $80 a barrel, sending gasoline and diesel prices in India surging to a five-year-high, also due to a weakening rupee against the dollar.

Earlier this week, economists told CNBC that they expect the Indian currency to further slide by the end of this year, widening India’s oil import bill and deteriorating its trade deficit and current accounts.

“The net trade oil deficit has widened considerably, owing to a combination of high oil prices and a weak currency,” DBS economist Radhika Rao told CNBC.

A cheaper rupee could increase India’s crude oil bill by as much as US$26 billion in the financial year 2018/19, ending March 2019, according to Indian government officials.

Although India’s economic growth continues to be robust, higher oil prices and rising interest rates are raising pressure on India’s budget and current account, Moody’s said in a report on Wednesday.

“Higher oil prices and interest rates will put pressure on the government’s budget and the current account. However, growth prospects remain in line with the economy’s potential, around 7.5% this year and next,” Joy Rankothge, a Moody’s Vice President and Senior Analyst, noted.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play