Energy Preview: Crude Oil Pulls Back, MCX Futures Hold Above Rs 6300 Per Barrel

24 Jan 2022 , 12:19 AM

The WTI Crude oil futures stayed under corrective pressure after hitting seven year highs near $88 per barrel. The commodity slipped under $83 per barrel on Friday amid weak US equities but ended near $85 per barrel. MCX Crude oil futures tested Rs 6200 per barrel in last session and closed at Rs 6313 per barrel, down 1.30% on the day. Undertone remains supportive amid supply concerns and traders are also assessed steady US economic cues. The Conference Board Leading Economic Index (LEI) for the U.S. increased by 0.8% in December to 120.8 (2016 = 100), following a 0.7% increase in November and a 0.7% increase in October. The US LEI ended 2021 on a rising trajectory, suggesting the economy will continue to expand well into the spring, the Conference Board noted. For the first quarter, headwinds from the Omicron variant, labor shortages, and inflationary pressures as well as the Federal Reserves expected interest rate hikes may moderate economic growth. The Conference Board forecasts GDP growth for Q1 2022 to slow to a relatively healthy 2.2% (annualized). However, for all of 2022, it forecast that the US economy will expand by 3.5% well above the pre-pandemic trend growth.

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