homemarket Newscommodities NewsCrude prices fall 2% and coal at 6 month low ahead of US Fed meeting and likely rate hike
Crude prices fall 2% and coal at 6-month low ahead of US Fed meeting and likely rate hike
The energy sector extended losses on Tuesday, especially with the strength in the US dollar and also ahead of the US FOMC meeting. The crude oil prices have seen a decline and are down at around 2 percent already this week as the threat of further interest rate increases and continued Russian crude flows cancelled out demand recovery expectations from China.
The energy sector extended losses on Tuesday, especially with the strengthening US dollar and in anticipation of a further rate hike in the upcoming US Federal Open Market Committee (US FOMC) meeting.
The crude oil prices have seen a decline and are down at around 2 percent already this week as the threat of further interest rate increases and continued Russian crude flows cancelled out demand recovery expectations from China.
There is enough and more availability of crude coming in from Russia. The month of January saw 50 percent a rise in the loading numbers. For February as well the numbers from China, India, and the rest of Asia do look positive for Russian imports and that clearly seems to be weighing on the prices.
Read Here | Oil prices fall near 2% on threat of further interest rate hikes, continued Russian crude flows
Having said that crude oil prices are still trading above $80 a barrel as markets are looking at some geopolitical concerns, especially rising after Israel and Iran.
Coal has seen a very sharp decline as well. It is trading at a six-month low right now and has slipped below $300 per tonne.
US natural gas prices have declined by nearly 25 percent for the month of January alone and now it is trading at a 21-month low.
Looking at the weekly chart, the crude oil prices are down by 3 percent, heating oil is down 8 percent, natural gas is down 12 percent, and the coal price is down 26 percent. So everything in energy at this point in time is under pressure.
(Edited by : C H Unnikrishnan)
First Published: Jan 31, 2023 12:52 PM IST
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