Do Not See Oil Prices Going Beyond $80-85: Arvind Subramanian

Bengaluru: Chief Economic Advisor Arvind Subramanian on Tuesday said he does not see oil prices going beyond 80 to 85 dollars, a price which, he believes, will help India manage its macro economy reasonably.

"... yes oil prices could go up, but given the fundamental changes (in the market), the likelihood of it (oil price) going up to anywhere beyond 80 or 85 dollars I (think) relatively (should be) ignored and as long as oil prices stay, don't go beyond that I think we can manage our macro economy reasonably," he said in an interaction conducted by Bangalore International Centre and Indian Institute for Human Settlements here.

Mr Subramanian also said gold prices have stabilized, going by the May and June figures.

"Demand, remember, went up for two reasons - gold started rising because it was seen as an investment and second, inflation was very high ... what you see in last few months is the decline in gold," he added.