The price of crude oil has dropped to 108 108. Brent dropped to 4 104 yesterday and today. Brent is currently trading at around $ 107.
After the IMF and World Bank cut global growth forecasts, Brent is trading at around 7 107, but natural gas has fallen to $ 7 due to increased US LNG imports and increased LNG production in China. The base metal is also seeing pressure.
Crude pressure continues
The price of crude oil has dropped to 108 108. Brent dropped to 4 104 yesterday and today. Currently, Brent is trading around 107. So far this week, Brent has fallen nearly 3.50 percent. For the second day in a row, the MCX has seen transactions below 8000 unpaid.
If we look at the reasons for the pressure on crude oil prices, the IMF, the World Bank have lowered the global growth forecast. Corona has also increased the likelihood of declining demand in China. In Shanghai, meanwhile, there has been some easing in the lockdown on harsh conditions. Here the EU is planning to ban Russia’s crude oil. Germany plans to cut imports from Russia by the end of this year At the same time, production in Libya has declined due to the political crisis. The war between Russia and Ukraine continues for the 57th day in a row.
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Natural gas under pressure
Natural gas prices are falling for 3 days in a row. The price of natural gas has come down to ৭ 8. For the first time this week, natural gas prices have opened below $ 7. In 3 days the price has decreased by about 13.50%. On April 18, natural gas prices hit a 13-year high. Natural gas at MCX has dropped to 530. May futures on MCX fell more than 2% Prices have risen 90% so far in 2022. Inventory in the US is 17% lower than the 5 year average. US record LNG exports are also under pressure. China has also increased LNG production.
Faded base metal luster
Base metal prices are seeing pressure on the MCX. The price of aluminum has come down to Rs 270. On the MCX, the price of zinc has dropped to 375, while on the MCX, copper is trading below 820. Copper prices have dropped to 3 10,300 on the LME. Nickel also fell below ৬ 33,600. Zinc prices in the LME also fell by about 2%.
Why are prices falling?
The effect of crude oil volatility on prices is being seen. The continued strength of the dollar has led to a fall in base metal prices. The tough position of the US Fed has also created pressure. Meanwhile, the FED could raise interest rates by 0.50%. Demand for this specialty has grown significantly as a result of recent corporate scandals.