Oil pares gains amid uncertain demand outlook in 2024, risk premium persists; Brent at $83/bbl
Also Read: Oil remains range-bound as rate cut hopes fade away: Here's how US Fed policy decision affects prices Brent futures dipped 22 cents or 0.26 per cent to $83.34 a barrel. The six-month spread for Brent on Tuesday was also at its highest since October, in a sign of a tighter market. US West Texas Intermediate (WTI) crude for April delivery fell 26 cents, or 0.33 per cent, to $78.20 a barrel, after earlier paring $1.
The March WTI contract gained 36 cents or 0.45 per cent to $79.55 a barrel ahead of its expiry during the session, according to news agency Reuters. Back home, on the Multi Commodity Exchange (MCX), crude oil futures due for a March 19 expiry, was last trading 1.78 per cent lower at ₹6,402 per bbl, having swung between ₹6,385 and ₹6,524 per bbl during the session, against a previous close of ₹6,518 per barrel. -Crude markets were "marginally lower" in "quiet trading over the Presidents' Day holiday in the US and as demand concerns offset ongoing Middle Eastern geopolitical tensions", said IG market analyst Tony Sycamore in a note.
-Various countries are increasing efforts to secure a ceasefire between Israel and Hamas in Gaza as the threat of an Israeli assault on the city of Rafah looms. The UN has warned an assault "could lead to a slaughter". -Shipping has suffered as the conflict in the Middle East threatens to escalate, with energy markets particularly vulnerable.
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