Oil ticks higher after Russia fuel export ban, US Fed, BoE decisions weighs on market; Brent at $93/bbl

  • Back home, on the Multi Commodity Exchange (MCX), crude oil futures due for a October 19 expiry, were last trading higher by 0.13 per cent at 7,485 per bbl, having swung between 7,353 and 7,570 per bbl during the session so far

Edited By Nikita Prasad
Published21 Sep 2023, 10:26 PM IST
Brent futures for November delivery rose 6 cents, or 0.7%, to $93.59
Brent futures for November delivery rose 6 cents, or 0.7%, to $93.59

Oil prices ticked slightly higher in choppy trading on Thursday, September 21, rising as much as $1 per barrel after a Russian ban on fuel exports snapped focus away from Western economic headwinds that had dropped prices $1 per barrel early in the session. Gains were capped as global central banks signalled continuing tight policy.

Brent futures for November delivery rose 6 cents, or 0.7 per cent, to $93.59. US West Texas Intermediate crude (WTI) climbed 36 cents, or 0.4 per cent, to $90.02. Both benchmarks had both risen and fallen more than $1 earlier on Thursday, according to news agency Reuters.

Back home, on the Multi Commodity Exchange (MCX), crude oil futures due for a October 19 expiry, were last trading higher by 0.13 per cent at 7,485 per bbl, having swung between 7,353 and 7,570 per bbl during the session so far, against a previous close of 7,475 per barrel.

What's driving crude oil prices?

-Russia temporarily banned exports of gasoline and diesel to all countries outside a circle of four ex-Soviet states with immediate effect in order to stabilize the domestic fuel market, the Russian government said on Thursday.

-So far this year, Russia was the world’s single biggest seaborne exporter of diesel-type fuel, narrowly ahead of the US, according to Vortexa data compiled by Bloomberg. The country shipped more than 1 million barrels a day during January to mid-September, with Turkey, Brazil and Saudi Arabia being among the main destinations.

-The Energy Information Administration (EIA) said that the US crude stocks declined last week, driven by strong crude oil exports, while petrol and diesel inventories drew down as refiners began annual autumn maintenance.

-The US Federal Reserve announced its interest rate decision after a two-day Federal Open Market Committee (FOMC) meeting and left the benchmark interest rates unchanged at 5.25 per cent - 5.50 per cent. Interest rate hikes to tame inflation can slow economic growth and reduce oil demand.

-The Bank of England (BoE) held its key interest rate at 5.25 per cent following 14 hikes in a row to fight soaring inflation. The decision to freeze the borrowing costs came one day after official data revealed a cooling of consumer price rises in Britain.
 

Technical View

Domestic brokerage firm Religare Broking has neutral sentiments on MCX Crude Oil. ‘’Extended dip below 7320 may induce weakness for the day. Voluminous rebound above 7440 may offer further upside as well,'' said the brokerage firm in its research report. Religare sees technical levels between 7,080 - 7,840. The turnaround is seen at 7,440.

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First Published:21 Sep 2023, 10:26 PM IST
Business NewsMarketsCommoditiesOil ticks higher after Russia fuel export ban, US Fed, BoE decisions weighs on market; Brent at $93/bbl

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