Dubai: Brent crude has witnessed a roller-coaster ride since the start of the week.
On Tuesday, the benchmark rose 1.2 per cent to $50.11 a barrel at 10:54am in New York, after losing as much as 5 per cent on Monday to hit a low of $49.36 at one point, its lowest since January 30.
“There is an additional pressure from excess supply in the market and along with market is also anticipating more supplies from Iran,” said Pradeep Unni, senior relationship manager, Richcomm Global. “Brent may fall further and witness a low of $47 per barrel.”
Commodities as a whole are under pressure because of expectations of a rate hike in the United States, and its impact on the dollar.
Since crude among other commodities are dollar based assets, which makes them inversely related with the greenback. “Most commodities would continue to be under pressure, unless there is renewed demand somewhere,” Unni said.
