new Delhi. Crude oil prices: Amidst the hope of a nuclear deal between the US and Iran, crude oil prices have registered a fall on Thursday. On Thursday, Brent crude was trading around $112 a barrel, the highest level since 2013 at $119.84 a barrel. Later it closed at $110.46 per barrel. However, in early trading on Friday, oil prices rose slightly from their closing level on Thursday.
The May contract of Brent futures on the Intercontinental Exchange (ICE) at 11:05 am on Friday was trading at $112.16, up 1.54% from the previous closing. West Texas Intermediate (WTI) April contract on the NYMEX rose 2% to $109.82 a barrel.
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What if the war doesn’t stop?
Rahul Kalantri, VP Commodities, Mehta Equities Ltd, said, “Profit booking was seen at higher levels in crude oil following indications that the United States may have a nuclear deal with Iran. If the deal goes through, Iranian oil could bounce back in international markets and limit profits.”
Iran is the ninth largest oil producer in the world, but economic sanctions on the country have resulted in less production than its capacity. However, due to the ongoing geo-political tension and conflict, oil prices are likely to rise in the coming days.
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“We expect crude oil prices to remain volatile in today’s session and if the Russia-Ukraine war intensifies, oil prices may continue to rise,” he said.
An expert’s opinion differs
Ravindra Rao, Head of Commodity Research at Kotak Securities, believes that the second round of talks between Russia and Ukraine has calmed the highly volatile oil market on Thursday. He said prices rose again on Friday as Russia-Ukraine tensions escalated following Russia’s attack on Ukraine’s nuclear plant.
Rao said, “Crude oil has gained more than 25% in a week and market players are now assessing the possibility of continuation of the rally. Unless serious efforts are made to de-escalate tensions, prices are likely to continue to rise.”
Tags: Crude oil, Crude oil prices
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