BackOil prices fall as China imposes fresh covid restrictions
China is one of the largest crude oil buyers in the world and the fresh restrictions have fueled fears of a fall in demand
PremiumNew Delhi: Crude oil prices declined on Friday as China reimposed covid-related restrictions in parts of its financial hub Shanghai and the capital city of Beijing.
China is one of the largest crude oil buyers in the world and the fresh restrictions have fueled fears of a fall in demand.
Prices have been on the downtrend since Thursday post the announcement of the restrictions. Rahul Kalantri, vice president for commodities at Mehta Equities Ltd said: “Oil prices dipped on Thursday but still hovered near three-month highs after parts of Shanghai imposed new Covid-19 lockdown measures, as strong gains in refined products contributed to an ongoing bullish backdrop for crude oil."
He, however noted that peak summer gasoline demand in the US continues to support crude prices.
Around 11.35 am, the August contract of Brent on the Intercontinental Exchange was at $122.46 per barrel, lower by 0.50% from its previous close. The July contract of West Texas Intermediate on the Nymex fell 0.43% to $120.99 a barrel.
The Indian basket of crude comprising Oman, Dubai and Brent crude, was last recorded at $121.28 per barrel on 9 June.
Despite the volatility in the crude prices, retail prices of petrol and diesel in India remained steady for the 19th consecutive day. In the national capital, petrol is sold for ₹96.72 per litre while the price of diesel is at ₹89.62.
The prices of the auto fuels were last revised on 22 May when petrol was cut by ₹8.69 per litre and diesel was reduced by ₹7.05 in the national capital.
-
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
