After selloff, oil prices recover on demand concerns
Premium- Oil had dropped around 5% on Monday. In China, following a rapid spread in infections, authorities in Shanghai have extended lockdowns to the fourth week
NEW DELHI: Global crude oil prices rose on Tuesday, recovering from a selloff in the previous session, led by concerns over the impact of the surge in covid cases in China on demand.
At 1035am, the Brent June contract on Intercontinental Exchange (ICE) traded at $103.50 a barrel, up 1.15% from previous close. West Texas Intermediate futures on NYMEX rose 0.90% to $99.43.
Oil had dropped around 5% on Monday. In China, following a rapid spread in infections, authorities in Shanghai have extended lockdowns to the fourth week. Meanwhile, orders for mass testing, including in Beijing's largest shopping district, have prompted fears of other Shanghai-style lockdowns.
Ravindra Rao, head, Commodity Research at Kotak Securities, said, “Crude has edged up amid pause in equity market after yesterday’s sell-off. Supply risks relating to Russia has also supported prices. However, weighing on price are demand concerns relating to China amid rising virus cases. EU’s hesitance to impose restrictions on Russian energy exports has also eased fears of a large deficit."
Rahul Kalantri, VP for Commodities, Mehta Equities Ltd, added that the Russia-Ukraine crisis and supply concerns from the OPEC+ are supporting oil prices in the international markets.
Retail fuel prices in India, meanwhile, remained unchanged on Tuesday - the 20th day in a row.
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In Delhi, petrol is priced at ₹105.41 per litre, while diesel is selling for ₹96.67 a litre.