On Friday crude oil prices fell by 0.07 per cent to Rs 2,996 per barrel as participants reduced their positions on low demand. On the Multi Commodity Exchange, crude oil for November delivery eased by Rs 2, or 0.07 per cent, to Rs 2,996 per barrel with a business volume of 3,020 lots.
On Wednesday crude oil prices rose by Rs 4 to Rs 2,881 per barrel as participants widened their positions on firm spot demand. On the Multi Commodity Exchange, crude oil for delivery in October traded higher by Rs 4, or 0.14 per cent, at Rs 2,881 per barrel in 2,876 lots.
Long-time professional traders watching the near implosion of the United States Oil Fund could only watch in wonder. “It tells me people always want to make a quick buck,” said John Davi, chief investment officer and founder of Astoria Portfolio Advisors.
The price of crude oil had already dropped from $66 a barrel on 31 December to $45 a barrel on 6 March owing to concerns on demand. But with the Organization of the Petroleum Exporting Countries and allies failing to reach a consensus on supply cuts, a price war triggered a further drop to about $34 per barrel.
On Thursday crude oil prices continue to decline and have lost ground. Currently, U.S. crude oil is trading at $31.15, down $1.94 or 5.83% on the day. Brent crude oil is trading at $32.98, down $2.82 or 7.88%. Earlier in the day, U.S. crude touched a daily low of $29. 98.
A standoff between Russia and Saudi Arabia over crude oil supply cuts saw international prices record one of their worst daily dips in about three decades. Though this could help the Indian economy, which is facing a slowdown, to keep the subsidy bill under control, the fall could accentuate global distress.
From Thursday chinese exchanges stayed closed due to the Lunar New Year, but other Asian and European markets are showing the full extent of fear of the new disease. Japanese Nikkei225 is declining by more than 1.2% since the start of trading on Monday. Futures on Euro50 lose the same amount at the beginning of trading, returning to drop after the break on Friday.