New Delhi: Global crude oil prices inched higher on Friday even as investors remain worried about weakening global demand and a rising interest rate regime.

At 1239 pm, the January contract of Brent on the Intercontinental Exchange traded at $80.43 per barrel, up 0.52% from previous close. The December contract of West Texas Intermediate (WTI) on the NYMEX rose 0.44% to $76.07 per barrel.

On Thursday, Federal Reserve Chair Jerome Powell suggested that the central bank was in no hurry to further raise its benchmark interest rate due to signs of ease in inflationary pressure. However, speaking at a panel discussion at the International Monetary Fund, Powell did not rule out another rate hike to help reduce inflation to the Fed’s target level of 2%.

Higher interest rates help in taming inflation but impact economic growth, which in turn hurts demand for crude.

Though up, prices are set to fall for a third week as supply concerns which followed the Israel-Hamas conflict have eased and demand worries have taken centre stage.

On Wednesday, Brent prices dropped below $80 per barrel for the first time since July due to lackluster economic outlook in China and Europe. Further, a rise in crude inventory in the US also raised concerns of falling demand.

With the easing of global prices, the Indian basket of crude oil stood at $81.64 per barrel on Thursday, according to data from the Petroleum Planning & Analysis Cell (PPAC). Last month, it averaged at $90.08 a barrel, and for November so far the average stands at $85.55 per barrel.

The fall in international prices bodes well for India as it imports around 85% of its total energy requirement. Last fiscal, India imported crude worth $161.4 billion. For the April-August period in FY24, the oil import bill stands at $53.4 billion.

ABOUT THE AUTHOR Rituraj Baruah Rituraj Baruah is a senior correspondent at Mint, reporting on housing, urban affairs, small businesses and energy. He has reported on diverse sectors over the last six years including, commodities and stocks market, insolvency and real estate. He has previous stints at Cogencis Information Services, Indo-Asian News Service (IANS) and Inc42. Read more from this author