crude oil Current Affairs - 2020
The growth rate eight core sectors which include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity witnessed a decline as per the data from the Ministry of Commerce and Industries.
Reduced growth rate of Core Sector
- The core sector which had witnessed a 6.2% growth in January 2018 witnessed a growth rate of 1.8 % in January
- The decline in the output of crude oil, refinery products and electricity pulled down the growth of eight core sectors to 1.8 %.
- The declining trend which has been witnessed since October 2018 suggests continued weakness in industrial activities and a weak second half economic growth in the financial year 2018-19.
- Production of crude oil, refinery products and electricity contracted 4.3%, 2.6% and 0.4%, respectively.
- Coal and cement output slowed to 1.7% and 11% in January as against 3.8% and 19.6% in January 2018, respectively.
- Natural gas, fertilisers and steel output grew 6.2%, 10.5% and 8.2 % respectively.
- Higher fertiliser growth has been attributed to the negative base effect last year.
Sluggish core sector growth would impact the Index of Industrial Production (IIP) as these segments account for about 41 per cent of the total industry output.
Tags: Cement • Coal • Core sector • crude oil • Electricity
The data from the Ministry of Commerce and Industries has shown that the growth in the eight core sectors of the economy fell to a 16-month low of 3.5 per cent in November. The eight core sectors are coal, crude oil, natural gas, refinery products, fertilizer, steel, cement and electricity.
Growth of Core Sectors
The following observations can be made from the data of the Ministry of Commerce and Industries:
- The growth in the eight core sectors of the economy fell to a 16-month low of 3.5 per cent in November, after it had hit a three-month high of 4.8 per cent in October.
- The cement production saw growth reduce by more than half in November.
- In the steel sector, the output registered a 6 per cent rise in November.
- The 3.7 per cent growth in coal production was a three-month low.
- The growth in electricity generation also halved to 5.4 per cent in November.
- Crude oil output contracted by 3.5 per cent.
- The natural gas production managed to barely make it back to the growth charts with 0.5 per cent
- The output of the fertiliser sector contracted by a significant 8 per cent.
Economists contribute the slowdown to the unfavourable base effect, along with a sudden slowdown in the growth of cement production and electricity output.