The cost of crude oil has surged back to levels last seen in October 2018, which would normally support arguments in favour of boosting production.
Output of eight core sectors grew by 16.8% in May, due to a low base effect and uptick in production of natural gas, refinery products, steel, cement
This is the fifth straight month of uptick in the WPI inflation
World oil supply is expected to grow at a faster rate in 2022, with the US driving gains of 1.6 mb/d from producers outside the OPEC+ alliance.
Next week’s US FOMC meeting would keep the market volatile though they have already hinted at keeping interest rates to near zero levels
Imports have grown by about 83% to $9.1 billion during June 1-7.
The auto fuel prices touched a new all-time high on Friday, with petrol becoming costly by 27 paise and diesel by 28 paise per litre
According to data, production of natural gas, refinery products, steel, cement and electricity jumped by 25%, 30.9%, 400%, 548.8% and 38.7% in April
The RBI also said the extent of retail price increase in the post-lockdown period was also much higher than the usual summer uptick in food prices
A combination of low inventories and a strong rebound in global growth is fuelling the demand for commodities