India's ailing economy may have little room to absorb higher oil prices

摘要

Singapore—The dramatic escalation of Middle East tensions and the risk of higher oil prices will likely prevent a quick recovery in India's oil products appetite, already at multiyear lows, and add to its fiscal pains amid feeble economic growth. It remains to be seen to what extent higher oil prices will impact domestic oil products demand and prevent an anticipated consumption recovery. But given the intensity of the situation, analysts said India needs to remain prepared with an alternative crude supply plan to cushion any potential disruption from the Middle East, which supplies roughly 65% of its crude imports.