How is crude oil affecting sensex ??

Question

How is crude oil affecting sensex ??

Answer 1

Oil prices effect everything since everything is transported by truck, plane or ship. It takes fuel to transport anything. Higher fuel prices, means higher consumer prices for products. It doesn't matter what exchange or country we are talking about.

have many prev. posts on oil.

Answer 2

Crude prices have the indirect but certain influence on the economy. Crude prices influence petrol and other petroleum products which in turn influence cost of production and transportation costs of all the products. Remember other than service sector all most all the manufacturing sector are directly associated with the price of the crude. When the price of this important element increases it will push up the prices and thereby inflation. Excessive inflation is of no good sign to economy and hence it slows down. Rise in sensex is nothing but rise in the growth rate of the economy and hence slow down in economy results in slow down in sensex