New Delhi: In recent weeks, rising crude oil prices have thwarted the gains made during the festive season, pulling India down. In the previous three months, the country had led the list as the nation outperformed emerging market (EM) peers on economic recovery for three months starting in July, as the second covid-19 wave eased and business sentiment strengthened. In recent weeks, however, rising crude oil prices have hampered the advances made during the festive season, moving India to third place.
The spike in petroleum prices benefited Russia, the world’s third largest producer, allowing it to ascend to the top. On a monthly basis, the Russian ruble gained 2.2 percent against the dollar, the most among the tracker’s 10 emerging market currencies. Rising energy prices weighed on India’s rupee, which weakened for the first time since July as a result of the country’s net imports.
As high energy costs hampered economic recovery from the COVID-19 pandemic, the Organization of Petroleum Exporting Countries (OPEC), last week, decreased its fourth-quarter world oil demand forecast by 330,000 barrels per day from last month’s forecast.