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Brent crude oil futures declined more than 6 per cent as demand from China weakened and the dollar strengthened in the global market.
At 10 am on Tuesday, July Brent oil futures were at $104.58, down by 6.94 per cent, and June crude oil futures on WTI were at $101.89, down by 1.16 per cent.
May crude oil futures were trading at ₹7,867 on Multi Commodity Exchange (MCX) in the initial hour of Tuesday morning, against the previous close of ₹7,979, down by 1.40 per cent; and June futures were trading at ₹7,793 against the previous close of ₹7,905, down by 1.42 per cent.
High interest worries
A stronger dollar made crude oil more expensive to holders of other currencies. Market reports noted that concerns over the higher interest rates and their impact on economic growth kept investors away from riskier assets such as crude oil.
The decline in crude oil demand from China, a major consumer, also hit prices. Reports said China’s crude oil imports declined by 4.8 per cent in the first four months of 2022 compared with the corresponding period a year ago. The Covid outbreak in many regions of China has led to lockdowns, impacting its economy.
Moreover, some members of the European Union were against a complete ban on import of crude oil from Russia in the backdrop of its ongoing war with Ukraine. They were worried about the impact on their economies.
May zinc futures were trading at ₹315.05 on MCX in the initial hour of Tuesday morning against the previous close of ₹313.10, up by 0.62 per cent.
Turmeric up, guar gum down
On the National Commodities and Derivatives Exchange (NCDEX), May turmeric (farmer polished) futures were trading at ₹8,222 in the initial hour of Tuesday morning against the previous close of ₹8,158, up by 0.78 per cent.
May guar gum contracts were trading at ₹11,560 on NCDEX in the initial hour of Tuesday morning against the previous close of ₹11,651, down by 0.78 per cent.
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