Crude oil extends decline despite geopolitical tensions; 4 key reasons weighing on prices
Also Read: Gold price today: MCX Gold falls over half a per cent; what should be your strategy for bullion today? However, Brent crude oil was trading 0.92% lower at $82.94 a barrel, while the US West Texas Intermediate (WTI) crude futures was down 0.80% to $79.16 per barrel. MCX crude oil prices fell 0.41% to ₹6,552.
Traders are looking ahead towards the meeting of the cartel OPEC in early June that will set the group’s supply policy for the second half. “NYMEX crude oil is expected to slip towards $78 levels on strong dollar and on concerns that the US Federal Reserve would keep its borrowing cost higher for longer, hurting economic growth and demand for oil.
Meanwhile, investors will keep an eye on political uncertainty in two major oil producing countries after Iran’s president died in a helicopter crash and Saudi Arabia’s crown prince deferred a trip to Japan because of the health of the King," ICICI Direct said in a note. It expects MCX crude oil June contract to slip towards ₹6,450 levels as long as it trades below ₹6,700 levels.
Also Read: Copper prices hit all-time high to break March 2022 record; what's driving the rally? Here are the key reasons why crude oil prices are falling: US Federal Reserve officials said they were awaiting more signs of slowing inflation before considering interest rate cuts. Thus, investors anticipate that the central bank will keep interest rates higher longer than expected.
The higher interest rates and inflation continued to weigh on consumer and industrial demand, pressurising crude oil prices. Analysts believe the death of Iranian President Raisi would not impact the crude market as Iran’s Supreme Leader Ayatollah Ali Khamenei has assured there won’t be any disruption to the
. Read more on livemint.com
