Crude oil rates choppy as G7 discuss price cap on Russian oil
PremiumSupply risks relating to Russia kept prices high as G7 countries discussed a price cap on Russian oil, pointed out Ravindra Rao, head of commodity research at Kotak Securities
NEW DELHI : Crude oil prices largely faced choppy waters on Monday. Prices, however, increased later in the day because of supply concerns as the Group of Seven (G7) countries discussed a price cap on Russian oil.
At the time of writing the story, the August contract of Brent on the Intercontinental Exchange was $114.68 a barrel, higher by 1.38% from its previous close. The August contract of West Texas Intermediate, on the other hand, rose 1.34% to $109.06 per barrel.
Supply risks relating to Russia kept prices high as G7 countries discussed a price cap on Russian oil, pointed out Ravindra Rao, head of commodity research at Kotak Securities. “However, weighing on crude oil prices are demand concerns as economic activity is slowing while aggressive monetary tightening has fuelled debate about a recession. Crude oil may remain in a range as supply risks counter demand worries. However, with increasing focus on global growth, demand concerns may keep pressure on prices," Rao said.
Volatility continued in international oil prices, but domestic retail fuel prices have remained steady for over five weeks. In the national capital, petrol was sold for ₹96.72 per litre and diesel at ₹89.62 a litre.
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Experts suggest that the lack of revision in petrol and diesel prices despite the fluctuation in oil prices would further impact the financials of Indian oil companies.