CRUDE OIL PRICES DROP AS COVID-19 LOCKDOWN CONCERNS OUTWEIGH SUEZ CANAL DISRUPTION

Commodity prices opened mixed on Thursday. Currently, Mentha oil Apr delivery stood as top gainer and traded higher by 0.71% to Rs. 958.60 per kg. Crude oil Apr delivery slipped nearly 2% in early trade.

Crude oil prices was trading 1.53% lower at Rs. 4379 per barrel as fuel demand concerns re-emerged alongside fresh coronavirus pandemic lockdowns, trimming overnight gains spurred by the grounding of a giant container ship blocking crude shipments through the Suez Canal.

Prices had tumbled earlier in the week on worries about tighter pandemic curbs in Europe and vaccine delays stalling growth in demand for fuel, but sharply reversed on Wednesday with the grounded ship in the Suez Canal potentially blocking 10 tankers carrying 13 million barrels of oil. The market was also helped on Wednesday by data showing U.S. gasoline demand improved and refinery run rates were picking up.

On MCX, Natural Gas Mar delivery down by 0.44% to Rs. 182.30 per mmBtu in early tarde.