Pressure Persists
Light, sweet crude for October delivery rose last week by $ 6.67 to settle at $ 104.55 a barrel on the New York Mercantile Exchange, after earlier rising as high as $ 105.25. It was oil's first close above $100 in a week. MCX Crude Oil for October expiry closed the week at Rs 4647 per barrel up Rs 204.
Crude climbed over $13 in the last three days as the government carries out a historic intervention into the financial system. But analysts say prices could resume their downward trend, noting that demand for energy will likely remain weak as a slumping economy leads Americans to drive less and businesses to scale back operations.
In economic front, Global central banks announced coordinated efforts to pump massive amounts of liquidity into the financial system to alleviate continued elevated pressures in the US dollar short-term funding markets. The BoC, BoE, ECB, SNB, BoJ and Federal Reserve increased their swap lines to provide improved liquidity in both term and overnight operations. The FOMC has approved a $180 billion expansion of its swap lines, with the facility while the ECB increased by $ 55 billion to up to $ 110 million and the Swiss National Bank by $ 15 billion to up to $ 27 billion.
Light, sweet crude for October delivery rose last week by $ 6.67 to settle at $ 104.55 a barrel on the New York Mercantile Exchange, after earlier rising as high as $ 105.25. It was oil's first close above $100 in a week. MCX Crude Oil for October expiry closed the week at Rs 4647 per barrel up Rs 204.
Crude climbed over $13 in the last three days as the government carries out a historic intervention into the financial system. But analysts say prices could resume their downward trend, noting that demand for energy will likely remain weak as a slumping economy leads Americans to drive less and businesses to scale back operations.
In economic front, Global central banks announced coordinated efforts to pump massive amounts of liquidity into the financial system to alleviate continued elevated pressures in the US dollar short-term funding markets. The BoC, BoE, ECB, SNB, BoJ and Federal Reserve increased their swap lines to provide improved liquidity in both term and overnight operations. The FOMC has approved a $180 billion expansion of its swap lines, with the facility while the ECB increased by $ 55 billion to up to $ 110 million and the Swiss National Bank by $ 15 billion to up to $ 27 billion.
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