Kamal Ghorui
MUMBAI: The US move to send a 15-point proposal to Iran aiming at ending the war in West Asia, combined with a slowdown in hostilities between the warring nations on Wednesday sent oil prices sliding and precious metals rallying.In late trades on Wednesday, Brent was trading at $97.2/barrel, down 3% on the day. In the second week of March, Brent had rallied to a multi-year high at close to the $120 mark. Incidentally, during the day, Larry Fink, CEO, BlackRocksaid that if oil prices rise to $150 level, due to supply disruptions in the Gulf region even after the war ends, that could result in a global recession.The war has all but halted shipments of oil and liquefied natural gas through the Strait of Hormuz, which typically carries about one-fifth of the world’s gas and crude supply, causing what the International Energy Agency has called the biggest-ever oil supply disruption, a Reuters report said.In the domestic market, in late trades on MCX, crude oil futures for April delivery was down 3% at Rs 8,475/barrel.Precious metals also saw an uptick as an end or a ceasefire would diminish the fears of energy supply-led disruptions leading to inflation and possibility of rate hikes. In mid-session in the US, gold was trading 3.4% up at $4,551/ounce (Oz) while silver was up 4.7% at $72.8/Oz. In the domestic market, in late trades on MCX, gold futures for April delivery was trading 3.8% up at Rs 1.44 lakh/10gm while silver futures for May delivery was up 4.7% at Rs 2.34 lakh/kg.
