Oil producers start investing surplus across globe as economies turn around

India needs to convince them about return potential to attract that money

Crude oil price, especially Brent, which is still used as a benchmark in India, is trading at around $84 a barrel, a level seen after June 2014. The past three or four quarters of consistently higher prices have helped oil-producing countries to turn their economies around. The fact that they have started investing their surpluses in global assets presents an opportunity for India to attract that flow and hedge withdrawals by other foreign investors.

Oil producing countries’ fiscal situation, which had worsened when prices fell to $25-$30, has now improved to a level in which their current realisations are sufficient