Letter to BS: US jacking up oil prices will hurt them in the long run

This refers to “Oil at $100? What it means for India, world economy” (April 30). The abrupt scaling up of oil prices by the US will only have a short-term advantage for them. Oil is a basic supporting commodity for most economic activities and not an independent product. Emerging economies with large fiscal deficit will exercise restraint in the import of oil, resulting in an economic slowdown. This will impact the global balance of trade negatively. Although in the short run, the rise in oil prices will be neutralised by trade in other commodities, inflation will subsequently impact all economic