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With the stalemate on Russian crude oil import ban by European Union continuing, Brent crude futures touched $120 a barrel on Monday morning.
At 10.05 am on Monday, July Brent oil futures were at $120.04, up by 0.51 per cent; and July crude oil futures on WTI were at $116.11, up by 0.90 per cent.
June crude oil futures were trading at ₹9,002 on Multi Commodity Exchange (MCX) in the initial hour of Monday morning against the previous close of ₹8,897, up by 1.18 per cent; and July futures were trading at ₹8,814 against the previous close of ₹8,710, up by 1.19 per cent.
The meeting of member nations of the European Union on Sunday failed to reach any decision on imposing a complete ban on the import of Russian crude oil following its war with Ukraine. However, the EU members will continue their discussion on imposing ban on Russian crude oil imports.
Crude through pipeline
Market reports said plans are being worked out to allow the import of Russian crude oil through pipelines and to ban sea-borne crude oil supplies to EU members. Such a deal would allow member countries such as Hungary and Slovakia to get their Russian crude oil through pipelines till further arrangements are made. The meeting, which is scheduled for Monday, is likely to discuss this matter.
A complete ban on Russian crude oil import by EU is likely to impact the already tight crude oil markets further.
A Reuters report said the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, are likely to continue with their plans to add 432,000 barrels a day in July in their July 2 meeting. These nations are not likely to yield to the pressure from the Western countries to increase the crude oil output.
A weaker dollar also supported the crude oil prices, as a stronger dollar would make imports more expensive for those importers holding other currencies.
Cotton declines, Stee longs up
June cotton futures were trading at ₹45,860 on MCX in the initial hour of Monday morning against the previous close of ₹46,230, down by 0.80 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June steel long futures were trading at ₹48,300 in the initial hour of Monday morning against the previous close of ₹47,760, up by 1.13 per cent.
June guar gum contracts were trading at ₹11,546 on NCDEX in the initial hour of Monday morning against the previous close of ₹11,645, down by 0.85 per cent.
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