Oil prices decline on hopes of ceasefire
PremiumThe prices of Brent crude had dropped below $100 per barrel level on Tuesday for the first time in three weeks
NEW DELHI : Crude oil prices declined further on Wednesday amid hopes of a ceasefire and easing of tensions between Russia and Ukraine with talks under way. The restrictions imposed to contain the recent surge in covid-19 cases in China have also weighed down on the prices.
The high oil prices have been a cause for concern for India as the country imports 85% of its oil demand. The recent incessant rise in global crude prices have lifted the Indian energy basket, comprising of Oman, Dubai and Brent crude.
It was last recorded at $110.30 per barrel on 14 March, according to data from the petroleum planning and analysis cell of the ministry of petroleum and natural gas.
Global prices of oil fell after an initial rise in during the early trade. Brent crude, which went past $100 per barrel earlier in day, later fell below $98 per barrel.
At the time of writing the story, the May contract of Brent futures on the Intercontinental Exchange was $97.93, lower by 1.98% from its previous close. The April contract of West Texas Intermediate on NYMEX fell 1.5% to $94.99 per barrel.
Brent prices had dropped below $100 per barrel on Tuesday for the first time in three weeks.
Hopes of easing tensions between Russia and Ukraine have calmed down oil prices. Ukrainian President Volodymyr Zelenskyy in a video address released on Wednesday said that the positions of Ukraine and Russia at peace talks sound more realistic, but more time is required.
Hopes of the resumption of the Iran nuclear deal has also calmed nerves in the market.
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The recent cooling off of prices come as a major relief as they have been largely elevated since the tensions intensified and Russia invaded Ukraine last month.
On 7 March , Brent had touched $139.13 per barrel, the highest since 2008.
Prices have largely been on the decline since 9 March after the UAE, a member of the Organization of the Petroleum Exporting Countries said it favoured high oil production by the cartel.
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