Global crude oil prices rise amid volatile trade

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International crude oil prices recovered on Friday after opening in the negative territory amid volatile trade.

Around 10.50 am, the November contract of Brent on the Intercontinental Exchange was at $89.90 per barrel, higher by 0.84% from its previous close. The October contract of West Texas Intermediate (WTI) on the NYMEX rose 0.65% to $84.08 a barrel.

Analysts said that Russia’s threat to halt oil and gas exports to Europe in case price cap is imposed on energy exporting from the country, lifted the prices. However, demand concerns amid renewed lockdowns in China, one of the world’s largest importers of crude limited the gains.

Further, the increase in US oil stocks also may weigh on the prices going ahead, according to analysts.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd: “We expect crude oil prices to remain volatile in today’s session.”

Sriram Iyer, Senior Research Analyst at Reliance Securities noted that oil prices recovered from session low and ended marginally higher on Thursday amid bargain buying and Russia’s threat to halt oil and gas exports to the European countries.

He said that the upside remained capped in anticipation of lower demand for next week. “Looking ahead, crude prices could trade higher, but upside could be capped amid build in inventories, worries that central banks‘ aggressive rate hikes and China’s Covid-19 curbs will hurt demand.”

Investors would also eye the EU energy ministers‘ meeting at Brussels to discuss the ongoing energy crisis. The meeting, known as the European Energy Council, was called for by Czech Industry Minister Josef Sikela in late August after natural gas prices in the continental market continued to climb as a result of the Russo-Ukranian war. (Mint)