Crude oil prices continue to decline; ONGC slips by more than 3 per cent

On Tuesday, crude oil prices crashed sharply by more than 8 per cent as a result of weak global oil demand and a weak stock market.

Subsequently, on Wednesday, extending its losses, WTI Crude futures were seen trading 0.73 per cent at USD 36.49 per barrel for October contracts while Brent Crude rates for futures were down by 0.65 per cent at USD 39.52 per barrel for November contracts.

Generally, Intercontinental Exchange (ICE)'s Brent futures and New York Mercantile Exchange (Nymex)'s WTI crude futures are considered as a benchmark for global oil markets.

Further, a rise in the COVID-19 cases has dimmed hopes of a fast global recovery. As sell-off in equity markets continue, crude may remain under pressure till the US markets stabilise.

Also, Saudi Arabia, which is a closely watched price maker, sets the tone for the global market by cutting its oil price that it ships to Asia thereby, further indicating weaker physical demand. Besides, a missing robust pickup in refining activity as well as jet fuel demand is giving rise to further concerns.

Along with a decrease in crude oil prices, natural gas prices also witnessed a drop.

BSE Oil & Gas index plunged by 1.60 per cent, which further dragged the index. ONGC declined by 3.62 per cent, BPCL was down by 2.03 per cent, HPCL declined by 5.74 per cent, etc.