Crude oil rebounds, settles at $50.40 a barrel

Indian basket falls by Rs 146 a barrel to Rs 3,120.06 a barrel; Exchange rate unchanged at Rs 63.39 per dollar

After having dropped to $49.66 a barrel during the day, global crude oil prices rebounded and closed at $50.40 per barrel.

Global crude oil prices have fallen for the first time in over five-and-a-half years on concerns of glut in global supplies and weakening economic growth.

Indian basket of crude oil fell by Rs 146 a barrel to Rs 3,120.06 a barrel on Tuesday. Rupee-dollar exchange rate remained unchanged at Rs 63.39 per dollar on Tuesday as compared to Monday.

Mirroring the rebound, energy stocks on the Bombay Stock Exchange gained. On Tuesday, the energy stocks had dropped by up to 6 per cent amid a massive sell off.

Reliance Industries, which lost 4.5 per cent in the previous session, rose 2.31 per cent, while Oil and Natural Gas Corp ended 1.70 per cent higher. ONGC fell 5.7 per cent on Tuesday.

Cairn India, however, continued the slide with a 2.23 per cent fall and Oil India fell 0.59 per cent to close at Rs 532.85.

Stocks of oil marketing companies also gained with Bharat Petroleum Corporation up at 1.06 per cent and Hindustan Petroleum Corporation at 1.98 per cent. IndianOil Corporation was up 0.51 per cent on the Bombay Stock Exchange.

Fall in crude oil prices means energy cost cuts for India, which imports over 80 per cent of its crude.

 

 

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