The decline continues after two weeks as well in crude oil prices and the third week also starts on a slightly weaker note. It is trading a couple of percentage points on the lower side and the prices are down 5 percent in the past month.

The strong US dollar is trading near two-year highs and that is weighing on the market. Also, no conflict is expected to happen in the Middle East during Ramadan, which suggests that there would not be supply disruptions and crude stock released from the US and IEA to the tune of 2 million barrels per day for the next two months also seems to have soothed some nerves there and the Chinese lockdown, which has been extended and China being the major importer of crude oil, expect some demand moderation from there.

Also Read: RBI policy: Expect crude oil price to average at $100 per barrel for FY23, says Guv Das

So everything suggests that there is profit-taking that could continue and that’s the reason the US crude oil price continues to sustain below USD 100 per barrel.

Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.

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