Oil prices fall nearly 1% on profit booking, higher interest rates concerns


New Delhi: International crude oil prices fell nearly 1% on Thursday as traders booked profits after a recent surge in prices. Analysts said concerns of further rate hikes by the US Federal Reserve also weighed on crude oil prices.

Around 3 p.m. the Brent November contract on the Intercontinental Exchange was trading at $92.60 a barrel, down 0.99% from its previous close. The November contract for West Texas Intermediate (WTI) fell 0.97% from its previous close to trade at $88.79 a barrel.

Ravindra Rao, head of commodity research at Kotak Securities Ltd., said crude oil prices declined as the tight Fed policy prompted investors to book some profits, foreshadowing signs of a tighter physical crude market. Is.

“The EIA (U.S. Energy Information Agency) report showed that U.S. crude inventories fell by 2.135 million barrels last week, as well as distillate and gasoline stocks declined, while crude stocks at delivery hub Cushing, Oklahoma It has fallen for the sixth consecutive time. This week it is at a 5-year seasonal low. Markets await the Bank of England’s policy decision today, and risk sentiment may remain limited,” he said.

Rahul Kalantri, vice president of commodities at Mehta Equities said: “Crude oil witnessed high volatility and its fall extended after the US Fed meeting outcome. Fed comments increased selling pressure in global commodity markets.” However, he said crude oil prices were being supported by a reduction in global supply due to OPEC+ production cuts and a decline in US oil inventories. .

ICICI Securities said the decision by Saudi Arabia and Russia to continue cuts of 1.3 million barrels per day (mb/d) has created a “physical tightness” in global supply. It also said, “OECD oil reserves have fallen well short of historical levels in recent months”. It said crude oil demand is set to hit a new record in 2023 due to higher demand for diesel, which could lead to a supply crisis.



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