Brent crude oil fell below $76 a barrel mark on Wednesday morning after dropping more than 5 per cent on Tuesday.
At 9.56 am on Wednesday, July Brent oil futures were at $75.30, down by 0.03 per cent, and June crude oil futures on WTI were at $71.58, down by 0.11 per cent.
May crude oil futures were trading at ₹5876 on Multi Commodity Exchange (MCX) against the previous close of ₹5905, down by 0.49 per cent, and June futures were trading at ₹5893 against the previous close of ₹5920, down by 0.46 per cent. cent.
Key ECB meet today
Concerns over the US economy following the discussions by the politicians there to avoid a debt default impacted the crude oil market on Tuesday. Following this, prices declined by more than 5 per cent. Crude oil witnessed a five-week low on Tuesday.
Now the market is waiting for the outcome of the meetings of central banks in some countries during the week.
Market is expecting an interest rate hike of 25 basis points by the US Federal Reserve on Wednesday in its efforts to control inflation. The Thursday meeting of the European Central Bank is also expected to increase interest rates.
Market reports said more such hikes by various Central banks across the globe can slow down economic growth and impact the demand for commodities such as crude oil.
On the supply side, a report in Bloomberg, which quoted the Iranian Oil Minister Javad Owji, said Iran has increased crude oil output more than 3 million barrels a day. This has provided additional supplies to the market. This news has come at a time when the output of the OPEC (Organization of the Petroleum Exporting Countries) declined in April.
Jeera below ₹45,000, isabgol down a tad
May natural gas futures were trading at ₹183.40 on MCX during initial trading against the previous close of ₹181.30, up by 1.16 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), May Jeera contracts were trading at ₹44,905 in the initial trading hour of Wednesday morning against the previous close of ₹45,560, down by 1.44 per cent.
May isabgol seed futures were trading at ₹24,600 on NCDEX in the initial trading hour of Wednesday morning against the previous close of ₹24,680, down by 0.32 per cent.