Brent crude futures advance after 4 pc decline over Covid concerns
Brent crude futures advance after 4 pc decline over Covid concerns
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Futures of Brent crude oil advanced around 1 percent on Wednesday after the 4 percent tumble in its previous trading session. The May contract of Brent crude on the Intercontinental Exchange is currently trading at USD  61.50 per barrel, 1.17 percent higher than its previous close.

The improvement in the crude futures comes after they fell over 4 percent Tuesday (March 23), on the back of concerns over new pandemic restrictions in Europe as well as a stronger dollar.

Further, concerns of increased supplies also weighed on the prices. The American Petroleum Institute (API) on Tuesday reported an increase in crude oil inventories of 2.927 million barrels for the week ending Friday, March 19.

As a result of the plunge in future, the front-month Brent contract slipped into a small contango for the first time since January. Contango refers to a situation when the front-month contracts are cheaper than future months.

The fall in crude prices came at a time when the market sentiments were largely bullish for the past sometime due to lower output from OPE and allies nations.

Amid weak global cues, Indian benchmark indices extended their day's losses and towards the close Sensex was down over 900 points on Wednesday., Sensex settled with loss of 871 points, while Nifty dropped to 14549, down 265 points. Nifty Bank also tumbled by close to 3 percent. Meanwhile, broader markets underperformed benchmark indices.

 

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