At $110 per barrel for crude oil? Goldman's prediction might pose a challenge to India's economy

The economic headwinds facing India's economy may intensify in the third quarter as crude oil prices approach $110 per barrel.

According to Jeff Currie, Goldman Sachs' global director of commodities research, Brent crude oil may reach $110 per barrel in the third quarter if China and other Asian governments lift COVID restrictions completely.

The trajectory of China's reopening following the Lunar New Year celebrations will provide clues for the global oil market.

"What exactly is idle? Planes, trains, and vehicles are all modes of transportation. "If you turn them all back on, there will be a significant increase in oil consumption," Currie said in an interview with Bloomberg Television.

The loosening of COVID limitations in China following a wave of protests has provided support to the oil market amid global recessionary fears.

Weak global demand due to rising interest rates may keep oil prices under control. Global central banks have hiked interest rates to combat persistent inflation. On Thursday, US inflation figures will be released.

India is a significant importer of crude oil, and a weakening currency has heightened concerns about a larger current account deficit (CAD).

Despite the fact that India has benefited from increasing its share of Russian oil in its basket, a jump in demand from China could lead to an increase in total costs.

Russia has surpassed traditional suppliers such as Iraq and Saudi Arabia to become India's largest oil supplier, accounting for approximately 22% in October.