Crude oil futures ended lower in the domestic market on Monday on growing expectations that the U.S. Federal Reserve could increase interest rates as early as next month & that a group of major crude producers may fail to come upward with a pact to stabilize output.
Federal Reserve Chairwoman Janet Yellen on Friday signaled increasing conviction that the central bank will raise shortterm interest rates in the weeks or months ahead.
A rise in U.S. interest rates usually does not bode well for oil prices, which are priced in the greenback. Higher interest rates could push the dollar bigger, making oil products more expensive for traders who hold a different currency.
At the MCX, Crude oil futures for September 2016 contract ended at Rs. 3174/barrel, downward by 0.63%, after opening at Rs. 3190, against the last ending price of Rs. 3194. It touched the intra-day low of Rs. 3143.