Oil prices down nearly 1% on growth concerns, high US inventory

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Publication    : 22/04/2024

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 New Delhi: 

International crude oil prices fell on Monday due to concerns about global growth and rising US crude inventories. Additionally, Israel's smaller than anticipated attack on Iran in retaliation helped.

The Intercontinental Exchange's June Brent contract was trading at $86.50 per barrel at 10.32 a.m., 0.90 percent lower than its previous close. West Texas Intermediate's May contract was trading at $82.44 a barrel, 0.84 percent lower than its previous close. During Friday's early trading, crude prices had increased by more than 3%.

According to Rahul Kalantri, vice president for commodities at Mehta Equities Ltd., concerns about global growth and a rising dollar index have lowered crude oil prices. “Exceeding expectations, the rise in US crude oil inventories further pushed down oil prices. Despite this, "at lower price levels, some support is provided by hopes for Chinese demand and ongoing tensions between Israel and Iran," he stated.

Prices have decreased significantly as a result of an increase in US crude inventories. In the week that ended on April 12, crude stocks in the United States increased by 2.7 million barrels, as reported by the Energy Information Administration of the United States. Additionally, crude prices have been impacted by indications that the US Federal Reserve may delay its rate cut plans. Austan Goolsbee, president of the Chicago Federal Reserve, stated last week that "I believe the Fed's current restrictive monetary policy is appropriate" in a Reuters report. "Given the strength of the labor market and progress on easing inflation seen over a longer arc," he said. On April 19, the Indian crude oil basket was worth $87.77. The basket has been selling for an average of $90 per barrel so far in April, up from $84.49 per barrel in March.