Markets to sail in rough waters if oil skyrockets to $150 a barrel

The stock markets may witness a sharp fall if the prices of crude oil touch the psychological mark of $150 a barrel on the New York Mercantile Exchange (Nymex). Crude hit a life-time high of $147.9 a barrel on Friday. The prices have jumped by more than $10 a barrel since July 9.

“Panic selling is likely this week. But the Sensex has a strong support at 12,300, which it may fall to in the worst case scenario,” said Deven Choksey, managing director, K R Choksey Shares and Securities, handling an equity portfolio of over $550 million.

Crude rose to records last week on growing tensions between Israel and Iran and supply disruptions from Brazil to Nigeria.

Business Standard