Friday February 22, 2019
Home Business Crude prices ...

Crude prices fall further with Iran n-deal

0
//

New Delhi, As Iran and the six world powers reached a nuclear agreement by their deadline, crude oil prices fell further on Tuesday, pulled down by prospects of easing of sanctions imposed on the Persian Gulf nation.2695927_25f451ea

London Brent crude dropped to $56.96 a barrel of nearly 160 liters, while US crude was trading down at $51.12. The Indian basket crude oil traded on Monday, the deadline for the nuclear deal, at $57.19 per barrel.

The Indian basket had fallen last Tuesday to $56 a barrel, as China’s stock market-plunged and the Greek crisis revived the specter of weaker economic growth that could impact oil demand.

China’s economic growth in the second quarter is forecast to be the weakest since the 2008-2009 global financial crisis.

The International Energy Agency said last week that Iran has at least 17 million barrels of crude oil stored and ready to be shipped.

“Iran would seek to increase its oil exports to the global market if a nuclear deal is reached and the western sanctions are lifted,” Iranian Oil Minister Bijan Zangeneh said recently.

He said Iran can restore its production of one million barrels per day fairly quickly, which supply can hit the market in less than six months.

This would add to output from the Organization of Petroleum Exporting Countries (OPEC) whose production levels are already at a three-year high, at a time when the market remains quite over supplied.

OPEC released its monthly oil market report on Monday, with Saudi Arabia reporting a record crude oil production of 10.6 million barrels per day (bpd) in June, an increase of more than 200,000 bpd on the previous month.

Stable crude oil prices in the international markets would help India manage its macro-economy well, chief economic adviser Arvind Subramanian has said.

“I do not see oil prices going beyond $80-85 a barrel (about 160 liters), given the fundamental changes in the market. If oil prices remain steady even at that ($80-85) level, I think we can manage the economy well,” Subramanian said at a lecture late last month at the Bangalore International Center.

“Besides decline in our oil import bill, we have seen fundamental shifts in the international market, which has helped crude oil prices remain steady,” he said.

(IANS)

Next Story

Sensex to Snap its Longest Consecutive Sessions Falls in Last Eight Years

"Strong inflows from DIIs, appreciation of rupee and value buying in mid and small caps helped the domestic market."

0

A slight ease in crude oil prices along with value buying and a strong rupee aided the benchmark Sensex to snap its longest consecutive sessions fall in the last eight years on Wednesday.

Accordingly, the benchmark index closed with handsome gains of over 400 points while the Nifty50 jumped past the 10,700 mark after struggling in the past sessions.

Adding to the positive momentum were the gains made by the rupee and healthy domestic investment which were supported by expectations that the US and China may resolve their trade tensions.

Sensex
Accordingly, the benchmark index closed with handsome gains of over 400 points while the Nifty50 jumped past the 10,700 mark after struggling in the past sessions. Pixabay

“Positive global markets lifted the domestic market sentiments after 2 weeks of under performance. Dovish minutes from US Fed and resumption of dialogue between US and China added positive vibes to the global market,” said Vinod Nair, Head of Research, Geojit Financial Services.

“Strong inflows from DIIs, appreciation of rupee and value buying in mid and small caps helped the domestic market.”

The S&P BSE Sensex closed 403.65 points or 1.14 per cent higher at 35,756.26 from its previous close of 35,352.61, while the NSE Nifty50 ended 131.10 points or 1.24 per cent higher at 10,735.45.

 

Sensex
“Strong inflows from DIIs, appreciation of rupee and value buying in mid and small caps helped the domestic market.” Pixabay

Among the top gainer were Vedanta, which inched up 4.67 per cent, followed by Tata Steel, up 4.13 per cent. ONGC, NTPC and Yes Bank came next.

Sensex saw only four stocks ending in the red led by Hero Moto Corp, Hindustan Uniliver, Bajaj Auto and IndusInd Bank.

ALSO READ: ISRO New Rocket ‘SSLV’ to Carry Two Defence Satellites

“During the penultimate hour, we saw emergence of strong buying interest, reclaiming 10,700 convincingly by adding more than 130 points to the bulls’ kitty,” said Sameet Chavan, Chief Analyst, Technical and Derivatives, Angel Broking.

Historically, Chavan said it had been observed that whenever index corrects for eight straight sessions without surpassing the previous day’s high, the ninth day becomes a reversal day or a bounce back day.  (IANS)