Crude Oil slumps 6%; ONGC, Oil India, Adani Total tumble up to 17%

Shares of vitality firms have been beneath stress falling by up to 17 per cent on the BSE in Monday’s commerce after oil costs tumbled about 5 per cent to a three-week low on Friday, as buyers feared that rate of interest hikes from main central banks may gradual the worldwide financial system and lower demand for vitality.

Mangalore Refinery & Petrochemicals tanked 17 per cent to Rs 78.55, whereas Chennai Petroleum Corporation tumbled by 15 per cent to Rs 277.75 and Oil India plunged 8 per cent to Rs 233.40 on the BSE in intra-day commerce. These shares had seen sharp run-up on larger crude oil costs.

Oil and Natural Gas Corporation (ONGC), Goa Carbon, Adani Total Gas and Hindustan Oil Exploration have been down within the vary of 5 per cent to 7 per cent. As of 09:49 am; the S&P BSE Energy index was down 2.4 per cent as in contrast to 0.28 per cent decline within the S&P BSE Sensex. The vitality index hit a multi-year low of seven,439.97 on the BSE in intra-day commerce as we speak.

Brent futures fell $5.85, or 4.9 per cent, to $113.96 a barrel by 11:02 a.m. EDT (1502 GMT). The US West Texas Intermediate (WTI) crude fell $6.66, or 5.7 per cent, to $110.93. Both have been on observe for his or her lowest closes since May 25.

Also pressuring costs, the US greenback this week rose to its highest since December 2002 in opposition to a basket of currencies. A stronger greenback makes oil dearer for consumers utilizing different currencies, the Reuters reported. CLICK HERE FOR REPORT

“Crude oil prices after the United States announced new sanctions on Iran, and as energy markets stayed focused on supply concerns that have sent prices soaring this year. The International Energy Agency said it expects demand to rise further in 2023, growing by more than 2 per cent to a record 101.6 million barrels per day. We expect crude oil prices to trade sideways to up with resistance at $121 per barrel with support at $115 per barrel,” Tapan Patel, Senior Analyst (Commodities), HDFC Securities mentioned.

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