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Crude oil traded lower on Monday morning following fears of the impact of US banking crisis on the global economy.
At 9:56 AM, May Brent oil futures were at $72.55, down by 0.58 per cent, and May crude oil futures on WTI were at $66.59, down by 0.51 per cent. April crude oil futures were trading at ₹5,532 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹5,584, down by 0.93 per cent, and May futures were trading at ₹5,580 as against the previous close of ₹5,628, down by 0.85 per cent.
UBS move
Failures of banks in the US led to apprehensions of broader weakness in the world economy, though several measures were initiated by different countries to tide over this crisis.
On Sunday, UBS in Switzerland announced its decision to take over Credit Suisse. Central banks from the US and Europe came out with a coordinated action to boost dollar liquidity. This move was aimed at easing the concerns in the market over the financial crisis following the failure of some banks in the US.
Despite all these moves, crude oil futures traded lower. Reports noted that the market is eagerly waiting for the US Federal Reserve’s announcement on monetary policy. The market is expecting an increase of around 25 per cent in interest rates on Wednesday.
It may be mentioned here that Fed’s aggressive interest rate hikes have had impact on the country’s economy. It has also made an impact on the demand for commodities such as crude oil.
Dhaniya, turmeric turn hot
March natural gas futures were trading at ₹196.10 on MCX during initial trading, against the previous close of ₹197.30, down by 0.61 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), April dhaniya contracts were trading at ₹7,156 in the initial trading hour against the previous close of ₹6,984, up by 2.46 per cent.
April jeera futures were trading at ₹33,805 on NCDEX against the previous close of ₹33,180, up by 1.88 per cent.
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