New Delhi: India stands to gain as oil prices have fallen by over 4$ a barrel this week to a four-month low in the international market following the OPEC+ cartel’s plan to allow an increase in production this year, while an increase in the US crude stockpiles has added to bearish sentiments.

The benchmark Brent oil futures for August edged lower to $77.50, on Wednesday, while July crude oil futures on WTI (West Texas Intermediate) were at $73.22.

Oil prices have now fallen below $80 a barrel for the first time since February 7. This augurs well for the Indian economy as the country imports around 85 per cent of its crude requirement and any decline in oil prices leads to a reduction in the country’s import bill. This in turn leads to a lowering of the current account deficit (CAD) and a strengthening of the rupee.

Apart from strengthening the external balance, a decline in oil prices also leads to lower prices of petrol, diesel and LPG in the domestic market, which eases inflation in the country.