Crude continues to decline due to increased supply. Brent is trading around $100. On the other hand, there is a slight pressure in gold and silver. On the other hand, volatility is being seen in base metals.
Crude oil will be worth $90?
The price of crude oil has come down to $100. Brent’s price had also dropped below $100 yesterday. So far this week, Brent is down more than 4 per cent. The price of WTI has also fallen below $96. Trading in WTI is trading below $100 for the second consecutive day. Brent, WTI prices have fallen for the fourth consecutive day.
Why is crude falling?
If we look at the reasons for the fall in crude oil prices, the weakness in Brent has increased due to the possibility of increased supply. IEA countries will release crude from SPR. 240 crore barrels of crude will be released in the next 6 months. IEA country will issue crude from SPR from May. The US will issue about 60 million barrels. It has been decided to increase the supply of 120 million barrels of IEA countries. In China, more than 22 thousand cases of corona have been reported in a day. The lockdown has increased in China due to the increasing cases of corona. Demand in China is expected to decrease due to the lockdown. The tough stance of US FED also put pressure on the prices. The priority of the US FED is to reduce inflation.
Also read- These banking stocks are eyeing Motilal Oswal’s bumper earnings of up to 46%, what do you have
gold and silver fluctuations
On COMEX, gold came down to $ 1930. The price of gold has fallen for 3 days in 4 trading sessions. Silver has come down to $25 for the third consecutive day on COMEX. Gold is trading below 51800 on MCX. The price of silver on MCX has come below 66700.
Why is the glow fading?
Due to the strengthening of the dollar, the pressure in gold and silver has increased. Dollar index remains intact at record price. The rise in bond yields has also led to the fall in prices. The tough stance of the US FED has also created pressure. US FED may raise rates further. The Russo-Ukraine War continues for the 44th day.
Base metals fluctuations
LME is seeing pressure in aluminium, zinc, copper. The price of aluminum has come below $ 3500 for the fifth consecutive day. Zinc is seeing a decline for the third consecutive day. The price has come down to $4200. The price of copper on LME has come down to $ 10300. Nickel prices on LME have risen for the 5th consecutive day. Nickel price on LME has crossed $34500.
due to fluctuations
If we look at the reason for the volatility in the base metal, then the tough stance of the US FED put pressure on the base metal. The strengthening of the dollar has added to the pressure. The dollar index remains at a record price. Demand has decreased in China due to the Corona lockdown. Higher coal prices have also created pressure. Production has come down due to rising coal prices.