Mumbai: Indian markets ended lower on Monday following the drone attacks on key oil facilities in Saudi Arabia, the world’s biggest oil exporter. The sharp rise in oil prices that followed the attack dampened any chances of a positive reaction to the government’s economic stimulus package last week.
UK Brent crude prices soared as much as 20 per cent to above $71 a barrel as markets reopened following a major attack on Saudi Arabia’s oil infrastructure.
The prices, however, Brent eased at the time of writing to $67 a barrel, nearly 12 per cent higher than its previous close.
The benchmark Sensex closed 261.68 points lower at 37,123.31. It opened at 37,204.56, lower than its previous close of 37,384.99. The broader Nifty also slid 72.40 points, or by 0.65 per cent to 11,003.50.
According to a Kotak report, prices of petrol and diesel in India may shoot up by Rs 5 to 6 a litre each in the next fortnight.
Oil surged to four-month highs on Monday after weekend attacks on crude facilities in Saudi Arabia sparked supply fears, while shares in Asia extended losses as bleak economic data from China sapped investors’ appetite for riskier assets, said Deepak Jasani of HDFC Securities.
“These attacks resulted in production suspension of 5.7 million barrels of crude oil per day,” Saudi Aramco said in a statement.
