Oil hits lowest levels in over a year over U.S banking crisis

Oil prices fell nearly 5%, below $75 a barrel to their lowest levels in over a year. This amid worries that a banking sector trust crisis could lead to a recession and reduce demand.

Both crude benchmarks fell for three consecutive days and are now at their lowest levels since December 2021.

U.S. oil stockpiles increased by 1.6 million barrels last week, according to government data, more than the 1.2 million barrel increase predicted by experts surveyed by Reuters, adding to the bearishness in the market.

Falling crude & Impact on India

India imports nearly 85% of its crude requirements. A fall in crude prices also reduces inflationary pressures on India and will have an impact on both retail and wholesale inflation.

Companies like BPCL, HPCL and Indian Oil shares saw a spike in prices after Brent crude fell below the $75 per barrel mark.
"As international oil prices cool, marketing losses will ease for the three state-owned refining and marketing companies, IOC, BPCL and HPCL,” ratings agency Moody’s said.