New Delhi, 22 June (IANS). Since the US attacked Iran’s nuclear bases, stress has increased globally and this may increase the prices of crude oil, which has already increased by 20 percent earlier this month.
In the last trading session, the futures of benchmark Brent crude were at around $ 77 per barrel and now crude oil is ready for another bounce due to the intervention in the US East conflict.
It is believed that widespread struggle in the Middle East may affect oil supply from Saudi Arabia, Iraq, Kuwait and UAE, which will bring a huge jump in prices. Shipping may also affect because Huti rebels have already warned that if the US attacks Iran, they will resume their attacks on ships.
India imports about 85 percent of its crude oil requirement, and a surge in oil prices may increase the country’s oil import bills and increase inflation rate, which can damage economic growth. Large -scale outflows of foreign exchange may also cause weakness in the rupee against the US dollar.
According to a report by MK Global, Iran produces around 3.3 million barrels (MBPD) per day and exports about 1.5 MBPDs, with China with 80 percent of the main importer. Iran is also on the northern edge of the hormuz Strait, through which more than 20 MBPD oil is traded in the world.
Hormuz Strait is a choke point in the Middle East. Saudi Arabia and UAE etc. are also shipping through this route and Iran has warned to close it earlier.
-IANS
ABS/