Global commodities have tumbled in recent months, ending an extended bull run that had hurt India by widening the current account and fiscal deficits, besides raising subsidies and weakening the rupee.
All this is now reversing. Petrol prices are at a 16-month low, cooking oil and rubber are at a five-year low.
Sugar and cotton are also down. This augurs well for a lower rate of inflation .
Why is oil falling?
Supply has increased substantially while demand outlook is weak
US shale output has risen significantly OPEC shows no signs of cutting output Saudi Arabia not willing to bear burden.
It increased Sep output 0.5% to 9.65 million barrels per day IEA has cut global energy demand forecast four months in a row IMF has scaled down the outlook for global economic growth
http://m.economictimes.com/news/economy/policy/low-crude-oil-and-other-commodity-prices-globally-to-bring-respite-to-narendra-modi-government/articleshow/44864972.cms
All this is now reversing. Petrol prices are at a 16-month low, cooking oil and rubber are at a five-year low.
Sugar and cotton are also down. This augurs well for a lower rate of inflation .
Why is oil falling?
Supply has increased substantially while demand outlook is weak
US shale output has risen significantly OPEC shows no signs of cutting output Saudi Arabia not willing to bear burden.
It increased Sep output 0.5% to 9.65 million barrels per day IEA has cut global energy demand forecast four months in a row IMF has scaled down the outlook for global economic growth
http://m.economictimes.com/news/economy/policy/low-crude-oil-and-other-commodity-prices-globally-to-bring-respite-to-narendra-modi-government/articleshow/44864972.cms
