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Business News/ Economy / Oil prices down nearly 1% on growth concerns, high US inventory
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Oil prices down nearly 1% on growth concerns, high US inventory

Indications that the US Federal Reserve may go slow on its rate cut plans also have weighed on crude prices

The average price of the Indian basket of crude oil so far in April is $90 per barrel, against $84.49 per barrel in March. (Reuters)Premium
The average price of the Indian basket of crude oil so far in April is $90 per barrel, against $84.49 per barrel in March. (Reuters)

NEW DELHI:New Delhi: International crude oil prices fell on Monday amid global growth concerns and improving crude inventory in the US. It also helped that Israel's retaliatory attack on Iran was smaller than had been feared.

At 10.32 am, the June contract of Brent on the Intercontinental Exchange was trading at $86.50 per barrel, lower by 0.90% from its previous close. The May contract of West Texas Intermediate was trading at $82.44 a barrel, lower by 0.84% from its previous close. 

Crude prices had surged by over 3% during early trade on Friday. 

Rahul Kalantri, vice president for commodities at Mehta Equities Ltd, said crude oil prices had eased amid a strengthening dollar index and global growth concerns.

“The increase in US crude oil inventories surpassed expectations, further exerting downward pressure on oil prices. Nevertheless, hopes for Chinese demand and ongoing tensions between Israel and Iran are providing some support at lower price levels," he said.

Volatility is expected to continue during Tuesday’s session, however.

A rise in crude inventories in the US has been a major factor for the fall in prices. According to data released by the US Energy Information Administration, crude stocks in the US rose by 2.7 million barrels in the week ended 12 April.

Further, indications that the US Federal Reserve may go slow on its rate cut plans also have weighed on crude prices.

"Given the strength of the labour market and progress on easing inflation seen over a longer arc, I believe the Fed's current restrictive monetary policy is appropriate," said Austan Goolsbee, president of the Chicago Federal Reserve, last week, according to a report by Reuters.

The Indian basket of crude oil stood at $87.77 as on 19 April. The average price of the basket so far in April is $90 per barrel, against $84.49 per barrel in March.

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Published: 22 Apr 2024, 11:13 AM IST
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