In the special edition of Editor’s Take, Zee Business Editor-in-Chief Anil Singhvi explained how the rise in crude oil around the world is a good indication. However, this will dent India’s import bill, he said. He also deciphers the fall in US markets on Monday, and how it should be viewed.
Speaking on the rise in crude oil prices, which jumped 2.5% to exceed $ 81 a barrel, Singhvi said, this oil surge is of concern globally and nationally. This will certainly put pressure on India’s import bill and could lead to inflation, as interest rates would eventually rise.
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In addition, other raw materials such as iron and steel are getting stronger; Commodity prices which have been declining for some time have risen over the past week and commodity inflation is a big concern for world markets and for us too, underlines the managing editor.
He mentions that the best part about this increase in crude oil is that it shows the economy is returning to normal. The rise in the price of crude oil is not due to the geopolitical situation but rather to the increase in economic activity and ultimately, the surge in demand, observed the market guru.
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OPEC + will increase production, however, expectations were that it should increase production amid economic recovery and increased demand, Singhvi says. He adds that energy sources are dwindling, as natural gas prices rise, even coal prices soar and now crude oil.
In US markets, Singhvi says, this is a range-bound nature, in which profit recognition is seen at the high end and buying is seen at the low end, it’s natural. and obvious. He says the trigger for booking and buying benefits could be multiple, he cites one of the reasons as the Facebook crash.
In a market apparently limited by the range, once we see a good bearish level is reached, the market will rebound, adds the editor. During Monday’s session, U.S. tech stocks such as Facebook were down 5%, while Apple, Alphabet and Amazon were down 2% each.