Crude Oil price on Friday recovered some of its losses from the last session when prices plunged the most in a month, amidst worries that emerging market crisis and trade disputes. Brent crude was up 0.3 percent, at USD 78.41 a barrel in early trade, after falling 2% on Thursday. US light crude was up 0.4% at 68.86, after dropping 2.5% on Thursday.
Crude oil futures plummeted more than 2 percent Thursday after a fall from near 2-month highs extended as the IEA (International Energy Agency) stated that the global supplies hit a record of 100 million barrels a day. The IEA also said that daily crude-oil output in the Organization of the Petroleum Exporting Countries increased in August by 4,20,000 barrels a day, to average 32.63 million a day. MCX Crude also plunged sharply, breaking under Rs 5,000 per barrel and coming up to around Rs 4,900 mark.
The International Energy Agency earlier warned that even though the oil market was tightening at the moment and world oil demand would reach 100 million bpd in the next 3 months, global economic risks were escalating.
Since the prices of crude are extremely volatile, high oil prices lead to inflation that in sequence increases input costs as well as eases non-oil demand and lower investment in net oil importing countries.
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