Oil prices decline over caution on US Fed interest rates, Iran sanctions; Brent at $88/bbl
Also Read: FY24 Review | Brent rises 9% in last 12 months on OPEC cuts, Middle-East tensions; Will crude oil hit $100 in FY25? Both benchmarks closed on Wednesday at their highest levels since October, having received support in recent days from the heightened geopolitical tensions and potential supply risks. Back home, crude oil futures last traded 0.94 per cent lower at ₹7,095 per barrel against a previous close of ₹7,162 per barrel on the multi commodity exchange (MCX).
-US unemployment claims increased by more than expected in the last week, according to Labor Department statistics, as labor market conditions gradually ease. This came after US Federal Reserve Chair Jerome Powell expressed caution on Wednesday about the timing of future interest rate cuts, after recent data has showed higher-than-expected job growth and inflation.
-The threat of sanctions has also capped some gains. The US on Thursday imposed new Iran-related counter-terrorism sanctions against Oceanlink Maritime DMCC and its vessels, citing its role in shipping commodities on behalf of the Iranian military.
-The US is using financial sanctions to isolate Iran to disrupt its ability to fund its proxy groups and hamper the country's support for Russia's war in Ukraine, said the Treasury Department. US has also signalled it could reimpose oil sanctions ahead of Venezuelan presidential elections later this year that many countries have said might not feature competitive voting.
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