4 days ago
Crude oil futures fall nearly 1% amid weak global cues
Crude oil prices went down by almost 1% in India and overseas markets.
This means oil became slightly cheaper to buy in futures trading.
Traders were watching reports that the United States might become involved in Venezuela’s oil industry.
They thought this could help Venezuela produce more oil.
More oil in the market can push prices down.
At the same time, tensions involving the United States and Iran have disrupted energy supplies.
The United States’ emergency oil stockpile was also reported to be at a 40-year low.
An analyst said prices are moving away from very high stress levels, but oil supplies are still tight.
September crude futures on the Multi Commodity Exchange fell Rs 49 to Rs 7,915 per barrel.
October crude futures on the Multi Commodity Exchange declined Rs 56 to Rs 7,797 per barrel.
Reports of a possible United States role in Venezuela’s oil industry raised expectations of higher output.
Brent futures fell 1% to USD 88.95 per barrel, while West Texas Intermediate slipped to USD 83.02.
Analysts said reduced fears of a wider war eased prices, although global supplies remain tight.
- Who
- Oil traders, analysts, the United States, Venezuela, Iran and Oman were involved in the developments discussed.
- What
- Crude oil futures fell nearly 1% in India and international markets.
- Where
- On the Multi Commodity Exchange in India, the Intercontinental Exchange and the New York Mercantile Exchange.
- When
- During the reported futures trading session; the contracts covered September and October deliveries.
- Why
- Prices fell amid weak global trends, expectations of potentially higher Venezuelan output and reduced fears of a wider war.
Key facts
- MCX September contract
- Fell Rs 49, or nearly 1%, to Rs 7,915 per barrel.
- MCX October contract
- Dropped Rs 56, or 0.71%, to Rs 7,797 per barrel.
- Brent October futures
- Declined 1% to USD 88.95 per barrel.
- WTI October futures
- Slipped nearly 1% to USD 83.02 per barrel.
- Market pressure
- Reports suggested a possible United States role in Venezuela’s oil industry could increase output.
- Supply conditions
- Analysts said underlying global oil supply remains tight.
- Strategic reserve
- The United States Strategic Petroleum Reserve was reportedly at a 40-year low.
Sources
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