Global crude oil prices, which closed at a record $144 a barrel on Tuesday, are expected to touch $150 a barrel. Both New York light sweet crude and London Brent north sea oil for August delivery scored a historic peak of $143.61 and $143.91 a barrel, respectively, before settling down at $140.
This uptrend in oil prices will cast a longer shadow on the Indian economy, already reeling under high inflation. This will also swell the country?s oil import bill. India imports close to 80% of its crude oil requirements.
Oil prices have doubled in the past year and have risen by almost 50% since the start of 2008, when they breached $100 for the first time.
Speaking to FE from Madrid, the chairman of Indian Oil Corporation, Sarthak Behuria, said, ?The indications are quiet clear that crude oil prices will soon cross $150-a-barrel mark. This will hugely impact the oil companies as we are already selling products at a huge gap.?
Behuria who attending the World Petroleum Congress (WPC) in Madrid, said many experts at the WPC, including Opec president C Khelil, have already indicated that oil may test higher levels of $170-180 a barrel before it start its backward journey and settles down.