Crude oil futures touched a near three-month high on Tuesday morning on concerns over tightening supplies in the coming days. However, futures traded slightly lower in early trade on Tuesday morning.

At 9.55 am on Tuesday, October Brent oil futures were at $85.25, down by 0.21 per cent, and September crude oil futures on WTI (West Texas Intermediate) were at $81.65, down by 0.18 per cent.

August crude oil futures were trading at ₹6,720 on the Multi Commodity Exchange (MCX) during initial trading, against the previous close of ₹6,697, up by 0.34 per cent; and September futures were trading at ₹6,694, as against the previous close of ₹6,676, up by 0.27 per cent.

EIA data indications

The market is awaiting the outcome of the virtual meeting of the Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, during the week. Major producers, including Saudi Arabia and Russia, have already announced production cuts for August. The market expects Saudi Arabia to extend this production cut to September. Such voluntary cuts are likely to lead to further tightness in the global crude oil market.

Some market reports that quoted the monthly report of the US EIA (Energy Information Administration) said US fuel demand has gone up significantly in May. Demand was the highest since the pre-Covid period of August 2019.

The market is also expecting demand growth for crude oil from China, a major buyer of the commodity. Proposed stimulus measures by the Chinese government are expected to boost the economy. Weak economic indicators from China in recent months indicated that growth is yet to gain pace in that country.

Dhaniya, guar gum dip

August natural gas futures were trading at ₹219.10 on MCX in the initial trading hour of Tuesday morning, against the previous close of ₹216.70, up by 1.11 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), August dhaniya (coriander) contracts were trading at ₹7,772, against the previous close of ₹7,814, down by 0.54 per cent.

August guar gum futures were trading at ₹12,191 on NCDEX, against the previous close of ₹12,255, down by 0.52 per cent.