Failure of Silicon Valley Bank (SVB) and its impact on the economy in the US continued to drag crude oil on Tuesday morning.
At 9.56 am on Tuesday, May Brent oil futures were at $79.90, down by 1.08 per cent, and April crude oil futures on WTI were at $74, down by 1.07 per cent.
March crude oil futures were trading at ₹6,108 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹6,167, down by 0.96 per cent, and April futures were trading at ₹6,158 as against the previous close of ₹6,215, down by 0.92 per cent.
Brent and WTI crude oil futures fell below 5 per cent in Monday’s session.
On Sunday, authorities in the US implemented emergency measures to instil confidence in the banking sector as the failure of SVB started impacting other banks in the US.
The economic crisis following the SVB failure and its impact on other sectors led to the concerns in the market about a potential recession. A recession could impact the demand for the commodities such as crude oil.
Now the market is focussing on the release of the US consumer price index (CPI) data for February later in the day. This data will be one of the important economic indicators for the Fed Reserve to consider before the monetary policy meeting next week.
The signs of inflation, if any, could make Fed Reserve focus on increasing interest rates. However, it is to be seen if the Fed takes such a decision considering the economic situation in the US now.
Turmeric, jeera sparkle
March natural gas futures were trading at ₹215.80 on MCX in the initial trading hour of Tuesday morning against the previous close of ₹210.40, up by 2.57 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), April turmeric (farmer polished) contracts were trading at ₹6,804 in the initial trading hour of Tuesday morning against the previous close of ₹6772, up by 0.47 per cent.
March jeera futures were trading at ₹31,150 on NCDEX in the initial trading hour of Tuesday morning against the previous close of ₹31,015, up by 0.44 per cent.