Crude oil prices fell sharply on Monday amid hopes that the situation in the Middle East would improve. International crude oil prices fell more than 3 percent, bringing prices closer to $100 a barrel. Crude oil prices are down by over 3.50 percent on the local futures market, MCX.
Crude oil for November 19 delivery on MCX fell 3.53 percent to Rs. 9586.00 per barrel is trading. Ajay Kedia, director of Kedia Advisory and a commodity market veteran, said crude oil prices have come down from the highs seen in the past few weeks. Investors focused on ongoing diplomatic efforts to end the Middle East conflict, on the one hand, and on the other, the threat of renewed US military action against Iran.
According to Ajay Kedia, Qatari and Iranian officials continued talks for the third consecutive day. They are trying to reach an agreement to end the ongoing US-Israel conflict over Iran ahead of this week’s US midterm elections. Iran has warned that if there are any new attacks, it will retaliate against US and Israeli bases in neighboring countries.
Meanwhile, President Donald Trump has said the US will not launch any new attacks on Iran before the election. Additionally, OPEC+ agreed over the weekend to maintain their current production targets through December.