Crude oil rose Monday morning as markets expected the Fed to soften its hawkish tone on rates following the US banking crisis caused by the failure of the Silicon Valley Bank (SVB).
At 9:57 am on Monday, May Brent crude futures were up 0.23% to $82.97 and April crude futures were up 0.27% to $76.89.
Crude oil futures in March rose 0.11% on the Multi-Commodity Exchange (MCX) to INR 6,306 during the first trade against the previous close of INR 6,299, while April futures rose 0.08% to It was 6,344 rupees against the previous closing price of 6,339 rupees.
Many in the market feel that the SVB’s failure was due to the cracks in the economy caused by aggressive interest rate hikes by the US Federal Reserve. A market report pointed out that the US banking crisis could put the brakes on aggressive rate hikes by his Fed.
Dollar weakness following US Federal Reserve and other regulator interventions due to SVB failure helped oil markets. A weaker dollar makes goods cheaper for foreign buyers holding other currencies. This will help boost demand for crude oil in the market. But markets were cautious about the economic impact of his SVB failure.
Also read: PNC, RBC interest in SVB cools as regulator seeks bailout bid
In addition to this, Saudi Aramco Chief Executive Amin Nasser’s comments were cautiously optimistic about a recovery in demand in a tightly balanced oil market Helped the price.
The market report also noted that Saudi Arabia and Iran’s decision to re-establish diplomatic ties will bring market stability.
Decrease in turmeric and Danya
March copper futures were trading at INR 757.35 on the MCX, up 0.62% to close at INR 752.65 on the previous day.
On the National Commodities and Derivatives Exchange (NCDEX), the April dhaniya contract is trading at Rs6,838, down 1.44% from its previous close at Rs6,938.
Turmeric (farmer-polished) futures for April were trading at INR 6,836 on NCDEX, down 1.13% to close at INR 6,914 on the previous day.