Global oil prices have reached the six-year low of $45 a barrel.
The low prices are considered to be good for emerging economies like India however is has negative side too.
Crude has fallen nearly 60% from $111 a barrel in June.
Reasons :
The reason behind this fall is believed to be the increased domestic production of oil in USA which is said to be nearly doubled in last 6 years.
Effects :
- India will gain due to this fall of prices as the import bills will come down.
- As the fall in the prices is also due to global economic slowdown, it will cause the decrease in the demand for Indian goods.