Agency, London.
Published by: Dev Kashyap
Updated Thu, 10 Mar 2022 03:03 AM IST
Summary
Brent crude prices rose by $1.68, or 1.3 per cent, to $129.66 a barrel in the global market on Wednesday on increased fears of a supply crisis. US benchmark WTI (West Texas Intermediate) was up $1.60, or 1.3 per cent, to $125.30 a barrel. Crude oil continues to rise after Russia’s invasion of Ukraine.
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Expansion
Brent crude prices rose by $1.68, or 1.3 per cent, to $129.66 a barrel in the global market on Wednesday on increased fears of a supply crisis. US benchmark WTI (West Texas Intermediate) was up $1.60, or 1.3 per cent, to $125.30 a barrel. Crude oil continues to rise after Russia’s invasion of Ukraine. On Monday, crude oil had reached a 14-year high of $ 139.13 per barrel. Tamas Varga of oil broker PVM says that the present crisis does not see any solution in the near future. This will keep crude oil prices up.
CAD may reach 2.8% in commodity
India Ratings and Research says that commodity prices are increasing continuously due to Russia-Ukraine crisis. This will have a direct impact on the country’s current account deficit (CAD). The agency said the uptick in the commodity could reach 2.8 per cent of the CAD GDP or $23.6 billion in the third quarter of the current fiscal, ie, October-December. If this happens, it will be a 13-quarter high of CAD. In the third quarter of 2021-21, CAD stood at 0.3 per cent, or $2.2 billion.
No impact on India’s defense sector: NITI Aayog
NITI Aayog member VK Saraswat said that the sanctions on Russia will not affect India’s defense sector. He said that Russia has inherent military power. It has infrastructure in the field of manufacturing of military equipment. It is more or less self-supporting in terms of production capabilities. The reserve is quite high in my opinion.
Short term sanctions on Russia will not create any problem for India.
He said that the Prime Minister has already said that now the government wants 68 percent of the defense equipment to be of indigenous category. This is the reason that in the budget of 2022-23, the Finance Minister had said that there should be more and more industries in the country, which make military equipment for the armed forces.