Oil edges lower as investors eye Middle East crisis amid stronger US dollar; Brent at $77/bbl
Also Read: Government cuts windfall tax on crude petroleum to ₹1,700/tonne effective tomorrow Back home, on the Multi Commodity Exchange (MCX), crude oil futures due for a January 19 expiry, was last trading 0.72 per cent higher at ₹6,051 per bbl, having swung between ₹5,969 and ₹6,109 per bbl during the session, against a previous close of ₹6,008 per barrel. -Analysts say that oil prices may find a ceiling unless production is shut in. Oil markets are still sensitive to tensions in the Middle East, but the base case remains that we'll see no significant disruption to flows, according to OANDA analysts.
-In the absence of actual and palpable impact on oil output, prices will remain well within the current $72-$82 range, said Tamas Varga, an analyst at PVM in a note. Oil prices to be giving way to a stronger dollar and weaker equities on Tuesday, because of lower expectations that US Fed could start cutting interest rates as soon as March. -Investors are also awaiting a speech by Fed Governor Christopher Waller for clues about when the US central bank might begin to cut rates.
The European Central Bank's interest rates are likely to come down this year, but policymakers have avoided making firm statements on the timing of such cuts. -In the Red Sea, a Malta-flagged bulk carrier was struck by a missile off Yemen on Tuesday. NYK, Japan's largest shipper by sales, instructed all vessels it operates not to use the Red Sea, while Sovcomflot, Russia's leading tanker group, is also considering alternative routes.
Read more on livemint.com
