Brent crude futures crawled back to above ₹100 a barrel level on Thursday morning after falling below $99 a barrel on Wednesday.
At 10.04 am on Thursday, September Brent oil futures were at $101.20, down by 1.52 per cent; and August crude oil futures on WTI were at $98.95, up by 0.43 per cent.
July crude oil futures were trading at ₹7,826 on Multi Commodity Exchange (MCX) in the initial hour of Thursday morning against the previous close of ₹7,766, up by 0.77 per cent, and August futures were trading at ₹7567 against the previous close of ₹7527, up by 0.53 per cent.
Rise in inventories
Market analysts felt that the increasing concerns about a global recession, and a report by the American Petroleum Institute showing an increase in the crude oil stock in that country were some reasons for the crude oil markets to witness this development. The market is now waiting for the weekly petroleum status report by the US EIA (Energy Information Administration), which is scheduled for release later on Thursday.
A recession would lead to the decline in the demand for commodities such as crude oil. This in turn will impact the price of the commodity. Major economies have resorted to monetary tightening to control inflation in their countries. This has led to the decline in the prices of major commodities.
In spite of all these developments, the crude oil supply situation continues to be tight in the global markets due to various factors.
A Bloomberg report said that the US and its allies have discussed a move to cap the price of Russian crude oil between $40 and $60 a barrel.
Such a move could prompt Russia to stop the production of crude oil. This will, in turn, lead to further tightness in the market driving the price of the commodity further up.
Copper, dhaniya up
July copper futures were trading at ₹655.80 on MCX during initial hours on Thursday morning against the previous close of ₹645.15, up by 1.65 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), July dhaniya futures were trading at ₹12,068 in the initial hour of Thursday morning against the previous close of ₹12,032, up by 0.30 per cent.
July guarseed contracts were trading at ₹5,090 on NCDEX in the initial hour of Thursday morning against the previous close of ₹5107, down by 0.33 per cent.
July 07, 2022