And therefore in case the OPEC cartel tries to maintain oil prices at artificially higher levels, most of the economies would not be able to bear the burden. And unlike in the recent past, when the developing economies were severely hit, this time developed economies are not going to fare better. All this could push the global economy into a full-blown recession. Another point, which is going to play a very important role in oil prices is the health of the US economy. According to many leading economists, the current quarter could witness a negative growth rate.
Views range from whether it is a slow down or a recession.
Leaving this to the economists, however one thing is clear, the US economy is not in good shape. In case OPEC goes for a further cut we could see the prices going up. In the long term however for the prices to stabilize, demand should pick up. And unless and until situation in US improves it would be a tough call. Indian Impact With India being a net importer of crude oil any weakness in Oil prices is good news for India.