Crude oil drops over 4% to Rs 8,340/barrel
Crude oil drops over 4% to Rs 8,340/barrel
Crude oil prices declined more than 4 per cent to Rs 8,340 per barrel in futures trade on Wednesday tracking weak global trends amid reports of possible negotiations between the US and Iran to end the war.
On the Multi Commodity Exchange (MCX), crude oil for April delivery depreciated by Rs 396, or 4.5 per cent, to Rs 8,340 per barrel. The May contract also fell by Rs 305, or 3.58 per cent, to Rs 8,209 per barrel.
Analysts said crude prices came under pressure as a bearish sentiment gripped global energy markets following shifting geopolitical developments in West Asia. “Crude oil prices took a hit on Wednesday opening with a gap down as bearish sentiment takes hold,” Aamir Makda, Commodity & Currency Analyst at Choice Broking, said.
He added that much of this cooling is driven by a shift in the geopolitical landscape. Globally, West Texas Intermediate (WTI) crude futures for the May contract slipped USD 3.21, or 3.48 per cent, to USD 89.14 per barrel on the NYMEX, while Brent Oil for June delivery decreased USD 4.65, or 4.64 per cent, to USD 95.58 per barrel in New York.
Makda said that there were reports that the US may lift trade sanctions on Iran in exchange for a nuclear deal have significantly eased global supply concerns and war-related uncertainty.
