Global economic growth concerns weigh in on crude oil

After witnessing a decline of round 6 per cent on Friday, the Brent crude futures edged down on Monday morning following the concerns over international economic growth.

At 10.03 am, the August Brent oil futures have been at $112.94, down by 0.15 per cent; and August crude oil futures on WTI have been at $107.84, down by 0.14 per cent.

The July crude oil futures have been buying and selling at ₹8,415 on Multi Commodity Exchange (MCX) in the early commerce in opposition to the earlier shut of ₹8,373, up by 0.50 per cent; and August futures have been buying and selling at ₹8,270 as in opposition to the earlier shut of ₹8,243, down by 0.33 per cent.

Support from OPEC spat, Libyan dispute

Last week’s growth on fee hikes by main economies, together with the US, had introduced down the Brent oil futures by 6 per cent on Friday. To tame the inflation, the US Fed Reserve had introduced elevating rate of interest by 75 foundation factors. These fee hikes had led to the fears of a potential recession in the worldwide financial system.

However, the elements such because the unrest in Libya, sanctions on Russian crude oil, and the failure of the OPEC (Organization of the Petroleum Exporting Countries) and its allies to extend the output, supported the crude oil costs globally.

The blockades by some teams in Libya had affected the crude oil manufacturing, and quoting the Libyan Oil Minister, a Reuters report mentioned the nation’s declining development of round 700,000 barrels a day.

In his outlook for the day, Saish Sandeep Sawant Dessai, Research Associate, Base Metals, Angel One Ltd, mentioned: “We anticipate crude to commerce decrease in direction of ₹8260 ranges, a break of which might immediate the value to maneuver decrease to ₹8120 ranges.”

June pure gasoline futures have been buying and selling at ₹524.70 on MCX in the preliminary hour of Monday morning in opposition to the earlier shut of ₹543.10, down by 3.39 per cent.

Castorseed slips

On the National Commodities and Derivatives Exchange (NCDEX), the July metal lengthy futures have been buying and selling at ₹47,200 in the early commerce in opposition to the earlier shut of ₹47,000, up by 0.43 per cent.

The July castor seed contracts have been buying and selling at ₹7,274 on NCDEX in the preliminary hour of Monday morning in opposition to the earlier shut of ₹7,414, down by 1.89 per cent.

Published on

June 20, 2022