IGI Logo

Below the Quote on Crude Oil by Ashish Rajodiya, Head - Commodities, PL Capital

“Crude oil extended its slide on Wednesday, with MCX November crude at rs 8,326 per barrel, down Rs 778 or 8.55%, its third straight fall. Brent dropped below $95, a two-month low, down from about $118 earlier in October, as hopes grew of a US-Iran deal.

Reports that the US has approved a draft understanding, passed to Iran through Qatari mediators, have pulled the war premium out of prices. Renewed Gulf exports have also left near-term supply looking ample.

The fall is not yet backed by a deal. Iran says the Strait of Hormuz will reopen only if fighting stops across the region, and an Iranian official has called the US response unconvincing. A signed agreement that reopens Hormuz would likely extend the decline, while stalled talks or fresh strikes could bring a sharp rebound.

Above views are of the author and not of the website kindly read disclaimer