Besides, if crude oil remains above $80 a barrel, American shale oil producers could also be back in business and that will help cap any further rise. Then there is the fact that major world economies, including those in Europe, have, so far, not really followed Trump’s call to stop oil purchases from Iran.

However, while all these factors could put a lid on global oil prices soon, it is up to the Modi government to decide how much of the pain it can absorb.

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