MCX crude oil prices fall as international markets remain weak; October contract also declines
NEW DELHI (Economy India): Crude oil futures declined by nearly 1 per cent to Rs 8,565 per barrel in futures trade on Friday, tracking a weak trend in international crude oil markets.
On the Multi Commodity Exchange (MCX), crude oil futures for September delivery fell Rs 78, or 0.90 per cent, to Rs 8,565 per barrel.
The October crude oil contract also declined, slipping Rs 43, or 0.51 per cent, to Rs 8,312 per barrel.
Brent Crude Falls Below USD 96
The decline in domestic crude oil futures followed weakness in international markets, with Brent crude slipping below USD 96 per barrel.
International crude prices remain a key factor for Indian commodity markets, as India imports a substantial share of its crude oil requirements. Movements in global crude prices can therefore have implications for domestic fuel prices, inflation, the trade balance and the broader economy.
MCX Crude Oil Contracts Under Pressure
The September and October MCX contracts both traded lower during Friday’s session, reflecting the softer trend in global crude benchmarks.
The September contract:
- Previous level: Rs 8,643 per barrel
- Current level: Rs 8,565 per barrel
- Decline: Rs 78 per barrel
- Percentage fall: Nearly 1%
The October contract:
- Current level: Rs 8,312 per barrel
- Decline: Rs 43 per barrel
- Percentage fall: 0.51%
Why Crude Oil Prices Matter for India
Crude oil prices have a significant influence on the Indian economy. Lower international oil prices can reduce the import bill and ease pressure on India’s current account and inflation, although the final impact also depends on the rupee-dollar exchange rate, domestic taxes and refining and marketing costs.
For consumers and businesses, sustained changes in crude prices can eventually influence transportation and logistics costs and, indirectly, the prices of several goods and services.
For the government and policymakers, crude oil remains an important economic variable because of its impact on inflation, external-sector stability and energy costs.
Global Market Trend Remains Crucial
The movement in Brent crude and other international benchmarks will remain important for domestic crude oil futures in the near term.
Traders will continue to monitor global supply-demand conditions, geopolitical developments, inventory data and expectations surrounding the global economy for further direction.
For Indian investors and commodity traders, the movement of international crude prices along with the rupee-dollar exchange rate is likely to remain a key factor influencing MCX crude oil contracts.
(Economy India)
