Despite ongoing conflict in West Asia, oil prices have not surpassed $100 per barrel due to diplomatic efforts, increased OPEC+ supply, and reduced demand from China. The situation impacts global crude supply and has significant implications for countries like India, which relies heavily on oil imports.

• 01Brent crude prices peaked at $98 but remained below $100 despite a 14% cut in global crude supplies due to the conflict.
• 02China, the largest oil importer, has reduced its crude purchases, relying on existing stockpiles, which has limited price increases.
• 03India's crude import dependence is around 88%, making it sensitive to global oil price fluctuations.
• 04The Reserve Bank of India maintained its repo rate at 5.25% amid the energy crisis, influenced by the current oil price stability.
• 05Analysts warn that a prolonged closure of the Strait of Hormuz or a resurgence in Chinese demand could lead to significant price increases.

India's economy is heavily affected by global oil prices, with every dollar increase impacting its import bill and currency value.