Crude price soars after attacks on Saudi Aramco

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Indian benchmark Nifty 50 started lower on Monday after oil prices surged over 10 percent, Oil prices jumped to an over six-month high after attacks on Saudi Aramco’s oil facility. Global oil prices surged the most on record after the strike on a Saudi Arabian oil facility removed about 5% of global supplies. In an extraordinary start to trading, Brent futures jumped almost $12 a barrel in the seconds after the open today.

The Finance Minister also announced a special window of Rs. 10,000 crore to boost affordable and middle-income housing. The government will make funding available for “net worth positive” housing projects that are not in a bankruptcy process or classified as non-performing assets (NPAs), Nirmala Sitharaman said.

The government is due to release data on wholesale inflation at noon. Separate official data last week showed consumer inflation stood at 3.21 per cent in August – the highest level recorded since October last year. Consumer inflation data led to hopes of one more rate cut by the RBI in its upcoming bi-monthly review due in October.

U.S. stock futures dropped on Sunday night amid fears that a surge in oil prices following an attack in Saudi Arabia could slow down global economic growth. Dow Jones Industrial Average futures were down 168 points on Sunday, and Nasdaq 100 futures were also down.

US President Donald Trump tweeted and said that he had authorized the use of oil from the country’s emergency reserve, the Strategic Petroleum Reserve, or SPR, to be used if needed to keep the markets well-supplied.”

Asian markets mostly fell in early trading Monday as global crude futures soared following the weekend attack on Saudi Arabian oil facilities. Hong Kong’s Hang Seng Index HSI, -1.00%   fell 1% and the Shanghai Composite SHCOMP, +0.10%   was about flat, while the smaller-cap Shenzhen Composite 399106, +0.50%   inched up 0.3%. South Korea’s Kospi 180721, +0.41%   gained 0.5%.

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