Crude oil prices have been continuously rising, and have now reached their highest level in 3 months. The main reason is the demand is expected to increase in China. Also, prices are rising due to the decline in US inventories and the Middle East crisis.
Rise in prices of Brent and WTI
- Brent Crude: The price has crossed $76.55 per barrel.
- WTI Crude: It has crossed $73 per barrel.
- On MCX: In the domestic market, crude oil is trading at the level of Rs 6290.
This is the 5th consecutive day that crude prices have seen an increase.
Due to rising prices
- Expectation of increasing demand from China: There are signs of improvement in China’s economy, due to which the demand for energy is likely to increase.
- Decline in US inventories: Prices are also going up due to decreasing oil storage in America.
- Middle East crisis: The market is keeping an eye on political and geographical tensions.
- US Fed Policies: Interest rates and economic decisions are also affecting the energy market.
Rise in gold and natural gas also
rise in gold prices
A rise in prices has been seen due to increased demand for gold.
- COMEX gold price has reached $ 2670 per ounce.
- This is the highest level in the last 2 weeks.
Rise in natural gas prices
- Natural gas prices in Europe have crossed €50.
- Reason:
- Russia has stopped the supply through Ukraine.
- Norway has temporarily halted production due to a compressor failure.
- The biggest decline in inventory has been recorded since 2021.
expert opinion
Narendra Taneja, energy expert
- China’s rising demand is a big trigger for crude.
- India imports maximum crude from Russia, due to which India can also be affected.
- If geopolitical tensions do not increase, crude prices may remain between $ 70-73 per barrel for the next 5-6 months.
Dr Dharmesh Bhatia, Emirates NBD
- Weakness in rupee continues.
- If crude and gold prices rise further, the rupee may fall further.
- Improvement in China’s economy may take crude prices to Rs 6600-6700 (MCX).
- WTI crude can reach $77 in the international market.
What to expect in the future?
Crude prices are likely to continue rising. If China’s demand increases further and there is no geopolitical crisis, the market may remain stable. But inventory position and global economic decisions will play a major role.
