- The Reserve Bank of India (RBI) anticipates a marginal relief in global crude oil prices over the medium term. It expects crude prices to remain around $86 per barrel at the beginning of the next financial year 2024-2025.
- The projection of $86 per barrel is attributed to the sluggish economic growth in China and the projected decrease in fuel consumption in the United States, both major consumers of crude oil.
- As of the reporting date, Brent crude oil was trading at $93.52 per barrel on the Intercontinental Exchange, while WTI crude oil was priced at $90.60 per barrel on the New York Mercantile Exchange.
- The International Monetary Fund (IMF) has lowered its economic growth forecast for China, predicting a growth rate of 4.2% for the next year, down from the previous forecast of 4.5%. The IMF also foresees a drop in China’s economic growth to 3.7% by 2027.
- Geopolitical factors and conflicts, such as the situation between Israel and Hamas, have added uncertainty to the oil market, which could impact oil prices. The Middle East, a significant oil-producing region, is closely monitored for its potential influence on global oil prices.