RBI Governor Shaktikanta Das says ‘wait and watch’ crude oil prices after Saudi Aramco drone strikes
RBI governor Shaktikanta Das said that drone attacks on Aramco may have some impact on India’s current account deficit and fiscal situation if the issue lasts longer. In an interview to CNBC TV18, he added that currencies and oil prices globally will be impacted by the Aramco incident. Das further said that he is likely to get clarity on the Aramco incident over the next few days and he will need time to access its long-term impact. Meanwhile, the Indian rupee weakened by over 0.5 per cent, taking cues from the surge in global oil prices by $10 per barrel.
Increase in oil prices is always going to be a cause of concern for India considering the country imports more than 80% of our oil requirements. “We assume at the macro level with imports of 1643 million barrels of crude oil in FY20 a dollar increase in prices on a permanent basis would increase the bill by roughly USD 1.6 billion per annum,” said a report by Care Ratings.
