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Crude oil futures traded lower on Thursday morning due to the fears of a recession in the US economy. At 10.05 am on Thursday, August Brent oil futures were at $108.92, down by 4.99 per cent; and August crude oil futures on WTI were at $103.81, down by 2.24 per cent.
July crude oil futures were trading at ₹8,103 on the Multi Commodity Exchange (MCX) in the initial hour of Thursday morning against the previous close of ₹8,351, down by 2.97 per cent; and August futures were trading at ₹7,959 as against the previous close of ₹8,201, down by 2.95 per cent.
Market analysts expressed concerns over a possible recession in the US following the recent interest rate hike by the US Fed Reserve. Last week’s decision by the Fed Reserve to increase the interest rates by 75 basis points was aimed at curbing inflation in that country. However, the market players feel that such an aggressive rate hike would lead to a recession affecting the demand for fuel.
‘Not engineering recession’
On Wednesday, Chairman of US Federal Reserve Jerome Powell said the Fed is not trying to engineer a recession to stop inflation. However, he said, it is fully committed to bringing prices under control, even at the risk of an economic slowdown.
US President Joe Biden has asked Congress to temporarily suspend the federal tax on gasoline as it would help bring down the price for the users in the US.
The US Energy Information Administration (EIA), which releases weekly petroleum status reports every Wednesday, did not release it this week. A message posted on the EIA website said, “Several US EIA product releases scheduled for the week of June 20, 2022, will be delayed as a result of systems issues. Our experts are working on a solution to restore the affected systems.”
July natural gas futures were trading at ₹529.90 on MCX in the initial hour of Thursday morning against the previous close of ₹540.90, down by 2.03 per cent.
Dhaniya up, guar gum down
On the National Commodities and Derivatives Exchange (NCDEX), July dhaniya futures were trading at ₹11,124 in the initial hour of Thursday morning against the previous close of ₹11,094, up by 0.27 per cent. July guar gum contracts were trading at ₹10,210 on NCDEX in the initial hour of Thursday morning against the previous close of ₹10,276, down by 0.64 per cent.
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