Crude oil prices continued to rule at levels around $125 a barrel on Tuesday morning from around levels of $130 yesterday as some countries have decided to oppose the sanctions against Russian crude oil.
Brent crude oil futures had reached a 14-year high of $139 a barrel on Monday on fears over Russian supplies before easing to around $130. May Brent oil futures were quoted at $125.48, up by 6.25 per cent and WTI April crude oil futures at $121.514, up by nearly one per cent.
March crude oil futures were trading at ₹9,297 on Multi Commodity Exchange (MCX) during the initial hours of Tuesday morning against the previous close of ₹9,284, up by 0.14 per cent and April futures were trading at ₹9,048 against the previous close of ₹9,026, up by 0.24 per cent. On MCX, March crude oil futures ended 9.13 per cent higher on Monday.
On Sunday, the US had stated that it was considering banning Russian oil and natural gas imports as a measure to tighten sanctions against Russia for its war with Ukraine. However, some other allies of the US were not so keen on this move.
While Germany expressed its reluctance on any such move, South Korea also indicated on the same lines of not supporting any such developments. Some market participants also feared demand destruction in energy sector.
On MCX, March nickel futures ended 67.76 per cent higher on Monday following a rally in the prices in the global markets. On Tuesday, March nickel futures were trading at ₹4,045 in the initial hour of Tuesday morning against the previous close of ₹3,795.50, up by 6.57 per cent. The three-month nickel contracts on LME (London Metal Exchange) were trading at $54,000, up by 12.32 per cent.
On Monday, global nickel futures prices went up by around 70 per cent, which is a near 15-year high. This followed the sanctions on Russia due to its war with Ukraine, leading to the concerns about the supply of this metal. Russia is a third largest producer of nickel.
Added to this, the demand from stainless steel and battery industries and decrease in the inventories also led to the increase in the price of the commodity.
On MCX, March zinc contracts were trading at ₹338.85 in the initial hour of Tuesday morning against the previous close of ₹336.30, up by 0.76 per cent; and April zinc futures were trading at ₹338.95 against the previous close of ₹335.85, up by 0.92 per cent.
Market reports said the concerns over supply disruptions following the high energy prices is one of the reasons for this. The Russia-Ukraine war has led to the increase in the prices of commodities such as crude oil and natural gas. Reports also noted that the war could lead to the supply disruptions of zinc, which is energy intensive, if the European smelters decide to rethink the operation of smelters following high energy prices.
March natural gas futures were trading at ₹370.10 on MCX in the initial hour of Tuesday morning against the previous close of ₹377.90, down by 2.06 per cent.
Dhaniya turns hot
On the National Commodities and Derivatives Exchange (NCDEX), April dhaniya contracts were trading at ₹10,872 in the initial hour of Tuesday morning against the previous close of ₹10,816, up by 0.52 per cent; and May dhaniya contracts were trading at ₹109,58 against the previous close of ₹10,936, up by 0.20 per cent.
March steel long futures were trading at ₹58,850 on NCDEX in the initial hour of Tuesday morning against the previous close of ₹59,900, down by 1.75 per cent.