Crude oil futures traded lower on Monday morning after witnessing a gain of around 6 per cent last week.
At 9.54 am on Monday, April Brent oil futures were at $81.88, down by 0.38 per cent, and March crude oil futures on WTI (West Texas Intermediate) were at $76.53, down by 0.40 per cent.
February crude oil futures were trading at ₹6,350 on the Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹6,361, down by 0.17 per cent; and March futures were trading at ₹6,369, as against the previous close of ₹6,374, down by 0.08 per cent.
Supply disruptions fear
Oil prices traded lower following reports of the ‘conclusion” of Israeli attacks in southern Gaza. Citing the Israeli Military, a Reuters report said Israel had conducted a series of strikes on southern Gaza that have now ‘concluded’. However, the report said the Israeli Military did not provide details on this. This news comes a few days after Israel’s rejection of a ceasefire offer by Hamas.
Tensions in West Asia have created apprehensions in the oil market over the supply disruptions. Any chances of s ceasefire in the region would help bring down apprehensions over oil supply disruptions to the world market.
Meanwhile, market reports indicated that energy companies in the US have increased their oil and natural gas rigs to the highest since December. This could potentially lead to higher oil production in the US. This may further lead to a decline in the price of the commodity.
Kapas gains, turmeric slips
Crude oil trading volumes remained thin due to holidays in some parts of Asia. Markets in China, Hong Kong, Japan, South Korea, Singapore, Taiwan, Vietnam and Malaysia are closed for holidays.
February natural gas futures were trading at ₹151.50 on MCX against the previous close of ₹153.80, down by 1.50 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), April kapas contracts were trading at ₹1,482, against the previous close of ₹1,478, up by 0.27 per cent.
April turmeric (farmer polished) futures were trading at ₹15,060 on NCDEX in the initial trading hour of Monday morning, against the previous close of ₹15,166, down by 0.70 per cent.