Investments:- Oil – Will it Foil or Spoil?

Over the last few years, the Stock Markets across the world have mostly gone in the direction of the Oil Prices. Even the recent 13 week run had a similar pattern. When the Oil Prices initially moved from the 30s level, up to the 50 dollars a barrel, I felt happy and thought that it was an indication of the global economic turn-around. Now with Prices above $70 so soon, I am worried that this might be a stumbling block of sorts for the economic recovery.

The sudden surge in the Oil Prices will eat up some of the stimulus packages put in place by several governments across the world. This will have an effect on the Inflation as well.

It would put a dent on the savings of the Individuals and affect their spending capacity. The Oil Prices have almost doubled from the lows of this crisis. How far the governments have taken into consideration, the surging Oil Prices in their planning, would be exposed soon. If the Oil moves a little bit higher from here, surely it will ruin some of the stimulus programs.

Now about India…..Today’s upward movement in the market was attributed to the expectation of high spending on the Budget, to boost the Indian Economy. It would be interesting to see how the escalating Oil prices Foils or Spoils the Indian Plan.

Disclaimer: All information and views posted by me in the blog are solely my views and opinions and do not necessarily reflect the truth or the real situation. The material and information contained on this post is provided for pleasure reading only. You are requested to consult your Financial Advisers before making any Investment related decisions. I do not recommend or suggest any investment decisions for any of the readers of this blog. I therefore do not accept liability for any loss one might incur, by taking decisions based on my posts.