NEW DELHI: Crude oil prices were mixed in early trade on Monday. Investors await the outcome of the meeting of the leaders of the Group of Seven (G7) countries in Germany on Russia’s oil and gas exports. Demand concerns over slow economic activity and prospects of a global slowdown weighed on prices.
At 1035 am, the August Brent crude contract was at $113.17 a barrel on the Intercontinental Exchange, up 0.04% from its previous close. West Texas Intermediate’s August contract was down 0.06% at $107.56 a barrel.
The prospect of greater supply tightness dominated the market as Western governments sought ways to cut Russia’s capacity for its war in Ukraine, even as G7 leaders are expected to discuss the revival of the Iran nuclear deal. Thi – which could lead to more Iranian oil exports.
“However, there are demand concerns weighing on crude oil prices as economic activity is slowing while aggressive monetary tightening has fueled the debate about slowdown. Ravindra Rao, Head of Commodity Research, Kotak Securities said, “Crude oil may remain in a range as supply risk counters demand concerns, but with increasing focus on global growth, demand concerns may keep pressure on prices.”
Rahul Kalantri, Vice President of Commodities at Mehta Equities Ltd, said global supply concerns due to Russia-Ukraine crisis and lower than expected output from OPEC+ countries are supporting crude oil prices at lower levels.
Meanwhile, domestic retail fuel prices have remained stable for over five weeks now. In the national capital, petrol sold 96.72 per liter and diesel price of . Was 89.62 per liter.
Experts said the absence of revision in petrol and diesel prices despite volatility in global oil prices would affect the financial position of Indian oil marketing companies.
Moody’s Investors Service has said that the financial performance of India’s state-owned refining and marketing companies, Bharat Petroleum Corp Ltd, Hindustan Petroleum Corp Ltd and Indian Oil Corp, will remain weak as long as gasoline and gasoil are below international prices.
“Nevertheless, we do not expect this situation to persist. We expect the Indian government to eventually allow fuel retailers to adjust the selling price, but the increase in prices will be implemented gradually.”