Crude prices subdued as worries over slowdown, China demand weigh
PremiumGlobal slowdown and anticipation of interest rate hikes by central banks along with the rising Covid-19 cases in China weighed on the investors sentiments.
New Delhi: International crude oil prices traded on a subdued note on Tuesday after they recovered from the seven-month low levels in the previous session.
Analysts said that concerns of a global slowdown and anticipation of interest rate hikes by central banks along with the rising Covid-19 cases in China weighed on the investors sentiments.
At 10.35 am, the November contract of Brent on the Intercontinental Exchange was trading at $93.73 per barrel, lower by 0.29% from its previous close. Similarly, the October contract of West Texas Intermediate (WTI) on the NYMEX fell 0.21% to $87.60 a barrel.
Rahul Kalantri, vice president for commodities with Mehta Equities Ltd said: “Prospects of a demand-sapping global economic slowdown continued to pressure oil prices, driven largely by aggressive monetary tightening by major central banks and top crude importer China’s Covid-19 curbs."
He noted that G7 is trying to recruit more countries to join their efforts in limiting Moscow’s energy revenues by imposing a ceiling on Russian oil prices, with the program expected to start from December as European sanctions kick in.
“We expect crude oil prices to remain volatile in today’s session," he said.
On Monday, Brent futures settled up 1.3%, at $94 a barrel and WTI crude settled 1.1% higher at $87.78 a barrel.
The emergency oil stock in the US fell 8.4 million barrels to 434.1 million barrels in the week ended 9 September, according to data released on Monday by the U.S. Department of Energy (DOE).
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Analysts said the supply concerns will continue to support the prices.
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