After crude prices fall, Uday Kotak hopes Donald Trump’s ‘open mouth policy’ keeps working

By: |
Published: April 27, 2019 4:09:29 PM

After surging to record highs, crude oil prices eased on Friday bringing much-needed respite for the global economy. The decline, which is the most since December, follows pressure from the US President on OPEC to lower commodity rates.

Donald Trump on Friday had told the American media that gasoline prices will come down as he called up OPEC and directed them to keep the prices in check.

After surging to record highs, crude oil prices eased on Friday bringing much-needed respite for the global economy. The decline, which is the most since December, follows pressure from the US President on OPEC to lower commodity rates. Commenting on fall in crude prices, veteran banker Uday Kotak said that Trump’s vocal concerns on the issue have helped in cooling down prices. He further hoped that the ‘open mouth policy’ of the US President works to bring them further down.

“Oil: as anticipated Donald Trumps speaks and cools down prices 4%. Hope his open mouth policy works. Iran policy decides actual supply. For India’s sake hope oil not much higher than $70. Watch the space,” Uday Kotak, MD, Kotak Bank, tweeted.

Also read: In the pipeline: ONGC to start gas production from KG basin by December

Donald Trump on Friday had told the American media that gasoline prices will come down as he called up OPEC and directed them to keep the prices in check.

In March earlier this year too, Trump had openly raised concerns on rising oil prices. This followed an easing of rates soon after. The experts had then attributed the fall in prices to Trump’s pressure tactics on OPEC.

After the US had said that oil waivers on imports from Iran wouldn’t be renewed, crude oil had hit a 6-month high this week. India, along with seven other countries, is expected to be most affected by the move as Iran has been a long time oil exported them.

The sanctions by the US on Venezuela have already escalated prices of crude oil this year, along with supply cuts by OPEC and other major global producers of oil.

Brent crude oil declined 3.5 per cent to $71.75 per barrel while WTI crude slipped 4.20 per cent to $62.84 yesterday. The experts expect the prices may fall further going forward.

Interestingly, there also exists a section of analysts that says the prices of crude oil may not remain elevated for long on account of US presidential elections scheduled for next year.

Even as the global crude prices remain elevated in the past few days, not much impact can be seen in the prices of petrol and diesel in the country.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1CNG price in Delhi hiked by Re 1 per kg
2ATF price hiked 56.6 pc, LPG by Rs 11.5 on global cues; petrol, diesel continue on hold
3Gold prices rise today as US riots trigger safe-haven demand; silver rates gain 23% in May