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Oil prices fall on profit booking, growth concerns

At 12.35 pm, the July contract of Brent on the Intercontinental Exchange was trading at $110.03 per barrel, lower by 1.36% from its previous close. The June contract of West Texas Intermediate on NYMEX fell 1.10% to $109.27 per barrel. (REUTERS)Premium
At 12.35 pm, the July contract of Brent on the Intercontinental Exchange was trading at $110.03 per barrel, lower by 1.36% from its previous close. The June contract of West Texas Intermediate on NYMEX fell 1.10% to $109.27 per barrel. (REUTERS)

  • Tightening monetary policies across major economies have also raised concerns of a growth slowdown, further weighing on the oil prices, analysts said.

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NEW DELHI : Crude oil prices declined on Monday as traders booked profits after prices increased in the previous session.

Tightening monetary policies across major economies have also raised concerns of a growth slowdown, further weighing on the oil prices, analysts said.

At 12.35 pm, the July contract of Brent on the Intercontinental Exchange was trading at $110.03 per barrel, lower by 1.36% from its previous close. The June contract of West Texas Intermediate on NYMEX fell 1.10% to $109.27 per barrel.

Ravindra Rao, head of commodity research at Kotak Securities said that demand concerns along with EU’s efforts to import gas from Russia without violating sanctions have eased the prices.

“China’s industrial production and retail sales data released today showed signs of increasing pressure on the economy amid zero tolerance Covid policy. Supply concerns eased somewhat as EU worked on ways to buy Russian gas without breaking sanctions," he said.

On Monday, China reported a drop in retail sales and industrial production in April. Retail sales declined 11.1% in April from a year ago period and industrial production dropped by 2.9% in April on a year-on-year basis.

Economic slowdown in China comes as a major concern for the oil market as the country is a one of the largest importers of the commodity.

Despite the volatility in the oil market, retail prices of petrol and diesel in India continued to remain unchanged. In Delhi, petrol is sold for 105.41 per litre, while diesel is priced at 96.67 a litre.

Retail transport fuel prices have been unchanged for around 40 days now after increasing by 10 per liter during March 22-April 6 on the back of soaring oil prices amid the Russia-Ukraine conflict.

The Indian basket of crude comprising Oman, Dubai and Brent crude, was last recorded at $104.29 per barrel on May 12.

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