Zee Media Bureau
Oil prices fell for a seventh straight session on Monday, coming close to 11-year lows, on growing fears that the global oil glut would worsen in the months to come in a pricing war between leading OPEC and non-OPEC producers.
Brent crude fell by 3.4 percent to below USD 36.70 a barrel for the first time since December 2008 and US West Texas Intermediate (WTI) sank 2.5 percent below USD 34.70 a barrel.
Brent traded less than 50 cents above the lows last seen during the 2008 financial crisis of USD 36.20 a barrel. If Brent falls below that level, that will be its lowest since mid-2004, when talk of a commodity super-cycle was only beginning. WTI's financial crisis low was USD 32.40 in December 2008.
Know how low oil prices will create favourable environment for the Indian economy:
`-Low oil prices will enable the government to rationalise subsidies.
-It will enable the government to absorb the loss that our own oil companies are facing because of future purchases.
-It will keep inflation under control.
-It will help the Reserve Bank to ease up the rates further.
-It will enable the government to increase the cess around fuel which will be diverted for infrastructure creation.
Also Watch:
