Brent crude slumps over 5% to $65.94/bbl

Crude oil prices slumped more than 5 per cent to Rs 5,671 per barrel in futures trade on Monday, tracking a sharp fall in global benchmarks as a strong US dollar and weak market sentiment weighed on the commodity. Crude oil for February delivery declined Rs 309, or 5.17 per cent, to Rs 5,671 per barrel in a business turnover of 12,512 lots.

Similarly, the March contract also depreciated Rs 294, or 4.94 per cent, to Rs 5,659 per barrel in 4,027 lots. In the international markets, crude oil futures suffered heavy losses, with the West Texas Intermediate (WTI) for March delivery slipping by $3.38, or 5.18 per cent, to $61.83 per barrel.

In addition, Brent Crude for April contract fell $3.38, or 4.88 per cent, to $65.94 per barrel in New York. “Crude oil prices remained highly volatile and slipped from their highs after Kevin Warsh was nominated by President Donald Trump as the next chief of the Federal Reserve.

“The nomination boosted the US dollar and bond yields, which weighed on oil prices,” Rahul Kalantri, Vice-President of Commodities, Mehta Equities Ltd, said.