According to experts interviewed by Bloomberg, a rise in oil prices to $100 per barrel could destroy the hopes of developing countries to slow inflation and reduce interest rates.
Analysts say that this is fraught with the collapse of the assets of the countries in question. John Harrison, Managing Director of Macro Strategy for Emerging Markets at GlobalData TS Lombard, is confident that the trend of slowing inflation in emerging economies due to rising oil prices has already broken down.
Tellimer strategist Hasnain Malik says economies dependent on hydrocarbon imports will fare the worst. These include India, the Philippines and Pakistan. Asset manager Carlos de Souza said expensive oil will increase inflation and budget deficits in these countries. This will cause currencies to weaken and bond yields to rise.
Nomura analysts believe that India is the country most susceptible to the negative impact of the rise in oil prices. This could force regulators in developing countries to delay monetary policy easing. This could lead to a slowdown in GDP growth in some countries, which could ultimately have a negative impact on the global economy.
At the end of August, Bloomberg realized that the world had begun Scale diesel fuel shortage.
It was previously known that oil prices were high will be protected Thanks to the alliance between Russia and Saudi Arabia.
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.