Crude oil prices retreated during late morning trade in the domestic market on Friday as investors and speculators cut risky bets in the energy commodity after the US Federal Reserve’s decision to hold borrowing costs unchanged near zero, signaled doubts over the health of the world’s biggest economy amidst a worsening global outlook, clouding the demand prospects for the fuel.
The FOMC stressed that the ongoing turmoil in global markets and uncertainty surrounding China may restrain growth in the US economy and suppress already weak inflation.
While it raised its 2015 economic growth forecast for the US from 1.9 per cent to 2.1 per cent, the Fed cut its estimate for 2016 to 2.3 per cent from 2.5 per cent while that for 2017 was slashed to 2.2 per cent from 2.3 per cent in June.
At the MCX, Crude oil futures, for the September 2015 contract, is trading at Rs 3,072 per barrel, down by 0.81 per cent, after opening at Rs 3,084, against the previous close price of Rs 3,097. It touched an intraday low of Rs 3,066.
The FOMC stressed that the ongoing turmoil in global markets and uncertainty surrounding China may restrain growth in the US economy and suppress already weak inflation.
While it raised its 2015 economic growth forecast for the US from 1.9 per cent to 2.1 per cent, the Fed cut its estimate for 2016 to 2.3 per cent from 2.5 per cent while that for 2017 was slashed to 2.2 per cent from 2.3 per cent in June.
At the MCX, Crude oil futures, for the September 2015 contract, is trading at Rs 3,072 per barrel, down by 0.81 per cent, after opening at Rs 3,084, against the previous close price of Rs 3,097. It touched an intraday low of Rs 3,066.
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