Oil led a dramatic fall in commodity prices on Monday, with brent crude prices falling 4% to fresh six-and-a-half year lows at $43.51 a barrel, as Chinese stocks tumbled. Intra-day, brent touched a low of $43.28, its weakest since March 2009.
The oil price decline sent the Indian crude basket to $45.21 per barrel levels. However, a depreciation in the rupee-US dollar exchange rate would nullify the effect of the drop. It is unlikely to translate into a steep fall in petrol and diesel prices for the average consumer by the end of the month, when the fortnightly price revision is due.
Falling prices could, however, significantly lower India’s crude import bill and subsidy payout.
Copper tumbled 2.5% on the London Metal Exchange, hitting a six-year low of $4,920 a tonne. Nickel slid 6% to its lowest since 2009 at $9,570 a tonne.
Raw materials prices declined this year on concerns over weakening demand from China, the world’s second-largest economy and top user of everything from industrial metals to food.
(with agency inputs)