Crude Reality
End of September, when Brent crude oil prices breached $80 a barrel, it was feared that by the time winter sets in, it would hit $100 a barrel. But within a little over 50 days, crude prices slumped by a third, due to the global supply overhang and widespread weakness in world economies.
The fall is a breather for the government, which is facing lower than expected GST collections. More importantly, the Narendra Modi led ruling NDA government faces elections in May 2019. Cheaper crude reduces India's foreign currency outflow and inflationary pressures, besides reviving economic activity.
The last time crude exceeded $100 a barrel was in September 2014, soon after the Modi led government was formed. But, it then slumped to $27 by January 2016, providing a fiscal cushion to
