Brent Crude Crosses $100: India’s Oil Basket Hits $108.9; What It Means For Markets

Brent crude has crossed the $100-a-barrel mark for the first time since July 24, hitting a seven-week high amid escalating West Asia tensions. India’s crude oil basket has also climbed to a four-month high of $108.9 a barrel, adding pressure on the economy and financial markets. The Nifty, meanwhile, has slipped to a seven-week low and breached the key 23,500 level. Chakri Lokapriya, Managing Director & CIO, TCG Advisory Services, explains why sustained high oil prices could raise inflation, squeeze corporate profitability, weaken the rupee and pressure market valuations. A sharp correction in crude could offer relief.