Crude oil futures eased to Rs 9,127 per barrel on Monday, reflecting weak demand despite global market turbulence triggered by US tariff hikes on Chinese imports and growing recession concerns.
Price Movement
On the Multi Commodity Exchange (MCX), crude oil for May delivery declined by Rs 35, or 0.38%, to Rs 9,127 per barrel, with a trading volume of 5,175 lots. Analysts attributed the drop to reduced demand from refineries and lackluster global economic indicators.
Global Factors
International benchmark Brent crude fell 0.10% to $81.49 per barrel in New York. The decline came amid heightened trade tensions after the US imposed additional tariffs on Chinese goods, escalating fears of a global economic slowdown. Market participants also weighed the impact of potential interest rate hikes by central banks to curb inflation, which could further dampen oil demand.
However, losses were limited by supply constraints from OPEC+ production cuts and ongoing geopolitical instability in key oil-producing regions. Analysts expect continued volatility in oil markets as traders monitor trade negotiations and central bank policies.
Outlook
Market experts suggest that crude oil prices may remain under pressure in the near term due to weak demand fundamentals, but any escalation in supply disruptions could provide support. Investors are advised to stay cautious amid the uncertain global economic environment.
