Brent Crude Prices touched a new five and half year low raising fresh worries for commodity markets. Equity markets might also react negatively as there are worries that if crude prices keep falling it could lead to debt defaults in the US for shale manufacturers.
Oil Cartel, OPEC has not been in favour of cutting output to help prevent a fall in crude prices. This has led to further price damage in crude oil.
A drop in crude prices is good news for India, since it may push inflation lower and help pull the current account deficit lower.
In India petrol and diesel prices have been revised downwards at the retail level. In fact, petrol and diesel prices could have been reduced further, but for the fall of the rupee against the dollar.