Crude at 16-month low, but Re slide checks retail respite hope


02/06/2012 03:23 AST  Business Standard

With the Brent variety of crude oil’s price falling below $100 a barrel for the first time since October 2011 on a slowing Chinese economy, hopes of some relief on the petroleum subsidy burden have revived in India.

However, the depreciating rupee works in the other direction, as crude oil is traded globally in dollars.

Oil prices fell a little more than three per cent today, with Brent crude to a nearly 16-month low. Weak US jobs data, poor Chinese manufacturing figures and the euro zone’s debt crisis prompted a cross-market selloff.

The benchmark Indian crude oil basket was about $4 lower at an average of $105 for the fortnight ending May 31, compared with the previous fortnight. However, the rupee fell by Rs 1.95 against the dollar during the same period, according to India government data released today.

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