What is the Effect of this Egyptian Crisis, and the Gulf markets reacting to it?
Look at the attached Crude Oil Weekly chart. After a nice fall to near $85, it shot up to the 90s region once again. It looks like, if this crisis continues, it might move above $100.
Oil Companies will be forced to step up the petrol price. The question is whether Govt will pass on the extra burden on Diesel to the consumers. If so, the already worsened Inflation will have negative impact. As you know, most of the material transport depends on Diesel and naturally, wholesalers and retailers will be passing on the extra burden to the consumer. We will see how this crisis pans out…
Disclaimer: The views expressed herein are to be used with your own discretion and neither analyst nor the publisher will be responsible for the outcome.
