New Delhi: crude oil prices The US Federal Reserve rose marginally on Friday amid prospects of a less aggressive rate hike, but below $100 a barrel. However, demand concerns limited the gains.
At around 1145, the September Brent contract on the Intercontinental Exchange was at $99.85 a barrel, up 0.76% from the previous close. WTI crude’s August contract rose 0.57% to $96.33 a barrel on the NYMEX.
Ravindra Rao, Head of Commodity Research, Kotak Securities, said crude oil has bounced back from the recent lows amid a halt in the US dollar rally and a halt in selling in the equity market. Supply risks related to Russia and warnings about an energy crisis also supported prices.
However, sharp rise in US crude oil stocks, mixed economic data from major economies, fresh lockdown in China and monetary tightening outlook of US Fed weighed on prices, Rao said. “The general bias may be to the downside until we see a significant improvement in risk sentiment.”
Investors await a decision by the US Federal Reserve to hike rates later this month. On Thursday, St. Louis Federal Reserve Chairman Jim Bullard said he favors raising the policy interest rate by 75 basis points in the next policy review. The Federal Open Market Committee (FOMC) of the US central bank is scheduled to meet on July 26-27.
Investors worried the Fed would raise rates by 100 basis points this month, as data released Wednesday showed US consumer prices rose 9.1% more than expected in the year through June, a 41-year low. reached a new high.
Despite volatility in oil prices globally, retail prices of petrol and diesel in India have remained unchanged for some time. Petrol is sold in the national capital 96.72 per litre, and the price of diesel is 89.62 per liter.
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