(Oil prices drop after 12-week…)
KOLKATA: Brent crude dipped on Wednesday, coming off a 12-week top hit in the previous session, although worries about falling North Sea output and hopes for more stimulus measures from both sides of the Atlantic kept prices above $111 per barrel.
Brent crude fell 66 cents to $111.34 after touching a 12-week intraday high on Tuesday in its third straight day of gains. US crude was at $93.16, down 51 cents. It settled at its highest since May 15 in the prior session, partly supported by a fire at a US refinery. August contract for brent crude on the MCX was trading at Rs 6,174 per barrel.
Gold declined for the first time in four days in London as a stronger dollar curbed demand for the metal as an alternative investment. Immediate-delivery bullion fell 0.3% to $1,607.95 an ounce. in London. December-delivery futures were 0.1% lower at $1,610.90 on the Comex in New York. Indian gold stayed flat as a weaker rupee outweighed leads from overseas markets, with traders seeking direction in prices before booking deals to stock for festival season. The most-active gold for October delivery on the MCX was at Rs 29,802 per 10 grams, up 0.12%, still near the previous session's low of Rs 29,756, a level last seen on July 24.
Malaysian crude palm oil (CPO) edged lower in tight-range trading on Wednesday, as caution prevailed on views that stocks of the edible oil will recover in July. The benchmark October palm oil futures on the Bursa Malaysia Derivatives Exchange had lost 0.1% to 2,903 ringgit ($936) per tonne. Prices earlier touched a low at 2,894 ringgit, a level last seen on July 27. The August contract for CPO on MCX closed at Rs 550 per 10 kg, down by Rs 8.50 from the previous close.
Indian soybean and soya oil futures eased on Wednesday due to good rainfall in top soybean producing Madhya Pradesh state on Tuesday. The October soybean contract on NCDEX was down 1.08% at Rs 3,945 per 100 kg. The September soya oil contract eased 0.78% to Rs 781.15 per 10 kg, while rapeseed nudged up 0.07% to Rs 4,412 per 100 kg.
US soybeans, on the other hand, firmed on Wednesday, rebounding after two consecutive session of losses as traders locked in profit after further rains were forecast for the US Midwest, aiding the quality of new crops. Chicago Board Of Trade November soybeans rose 0.45% to $15.72 per bushel, having closed down 1.2% in the previous session. November soybeans remain down 3.44% for the week.