Crude oil and most of the other commodities were on free fall on 5th May becasue of weak economic data from Europe. US crude specifically fell the hardest and was down more than $12 at one point of time before closing down $9.44 to settle at $98.26. This suggests the huge speculative position unwinding in the commodity.
Additional pressure came from the news that OPEC was considering raising formal output limits when it meets in June to convince oil markets it wants to bring prices down and reverse the impact of fuel inflation on economic growth.
Oil is definitely on a strong tragectory but this massive fall will keep the crude prices under check for considerable period of time. This augurs well for India which is struggling to keep inflation under check.
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