NEW DELHI and MUMBAI (Bloomberg) -- Narendra Modi's first term as leader of the world's fastest-growing oil market coincided with the biggest price crash in a generation. Crude's rebound into a bull market is set to test the Indian Prime Minister as he gears up for re-election in 2019.
While low prices helped shrink deficits as Modi cut subsidies after taking the reins of Asia's third-largest economy in 2014, a 33% jump in global benchmark crude since June has lifted oil close to $65/bbl. If it hits and stays at that level in the year through March, inflation could rise by 30 basis points and a key measure of growth may weaken by 15 basis points, the central bank estimates.
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Headline crude prices for the week beginning 12 November 2018 – Brent: US$71/b; WTI: US$60/b
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