Brent crude hits $100 a barrel again today

After falling below $100 a barrel on Tuesday, Brent crude oil futures again crossed the $100 a barrel mark on early Wednesday. Meanwhile, ceasefire talks are on between Russia and Ukraine, and some parts of China is witnessing the outbreak of Covid. A week ago, the Brent crude oil prices had touched a 14-year high of $139 a barrel last week.

May Brent oil futures were at $100.80, down by 5.46 per cent; and April crude oil futures on WTI at $96.89, up by 0.53 per cent.

March crude oil futures were trading at ₹7,395 on Multi Commodity Exchange (MCX) in the initial hour of Wednesday morning against the previous close of ₹7,381, up by 0.19 per cent; and April futures were trading at ₹7300 against the previous close of ₹7,294, up by 0.08 per cent.

In his crude oil outlook for the day, Rahul Kalantri, VP (Commodities) of Mehta Equities Ltd, said crude oil settled on a weaker note in the international markets on Tuesday. Crude oil extended its fall amid China Covid lockdowns and easing supply fears. The rapid spread of new variant and the ineffectiveness of the Covid vaccine on new variant prompted the Chinese authority to impose a lockdown. China has also cancelled thousands of flights to control spread of the virus.

He said crude oil showed an unexpected reaction after China locked down its two megacities. Crude oil also plunged amid possible US-Iran deal and also possibility of returning Venezuela’s oil into global markets.

The US shell oil productions are also rising and cap crude oil prices. However, the Russia-Ukraine crisis could support oil prices at lower levels.

“WTI could hold its key support of $93.20 a barrel while Brent could also hold $96 a barrel in today’s session. Crude oil is having support at $93.20–90.00 and resistance is at $101.80–104.40. In rupee terms crude oil has support at ₹7,080-6,900, while resistance is at ₹7,490–7,770,” he said.

Referring to an early Wednesday video address by Volodymyr Zelensky, President of Ukraine, an agency report said the positions of Ukraine and Russia were sounding more realistic at peace talks, but more time was needed.

“The meetings continue, and, I am informed, the positions during the negotiations already sound more realistic. But time is still needed for the decisions to be in the interests of Ukraine,” the report said quoting Zelenskiy.

March natural gas futures were trading at ₹353.20 on MCX in the initial hour of Wednesday morning against the previous close of ₹350.60, up by 0.74 per cent.

Other top gainers on MCX included copper, zinc and aluminium in the initial hour of trading.

March copper contracts were trading at ₹794.70 on MCX in the initial hour of Wednesday morning against the previous close of ₹790.10, up by 0.58 per cent; and March zinc contracts were trading at ₹315.80 against the previous close of₹314.50, up by 0.41 per cent.

On MCX, March aluminium futures were trading at ₹267 in the initial hour of Wednesday morning against the previous close of ₹266.35, up by 0.24 per cent.

Guar gum up, dhaniya down

On the National Commodities and Derivatives Exchange (NCDEX), April steel long contracts were trading at ₹56,000 in the initial hour of Wednesday morning against the previous close of ₹55510, up by 0.88 per cent.

April guar gum contracts were trading at ₹11,100 on NCDEX in the initial hour of Wednesday morning against the previous close of ₹11,061, up by 0.35 per cent; and May guar gum contracts were trading at ₹11,280 against the previous close of ₹11,173, up by 0.98 per cent.

April dhaniya futures were trading at ₹10414 on NCDEX in the initial hour of Wednesday morning against the previous close of ₹10436, down by 0.21 per cent.

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