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Tight fuel supply and Monday’s drone strike in Abu Dhabi fueled a jump in crude oil futures across the globe.
February crude oil futures traded at ₹6,288 on the Multi Commodity Exchange (MCX) during the initial hours of Tuesday morning against the previous close of ₹6,233, up by 0.88 per cent.
Brent crude oil futures touched a seven-year high on Monday with March Brent oil futures rising to $87.22, up by 0.84 per cent. March crude oil futures on WTI rose to $84.31, up by 1.21 per cent.
Reports said there is a fear of possible supply disruptions due to the drone attack on the UAE by Yemen’s Houthi group. This has increased the tension between the Iran-led and Saudi Arabian-led groups.
After Monday’s attacks on fuel trucks killing three people in UAE, the Houthi group has warned of more attacks. Meanwhile, UAE also said that it “reserved the right to respond to these terrorist attacks”.
Market reports said that tightness in supply is unlikely to ease as some members of OPEC (Organization of the Petroleum Exporting Countries) and its allies are still finding it difficult to reach the agreed production output due to various issues. The January 4 meeting of OPEC and its allies decided to increase the supply to 400,000 barrels a day for February.
January copper futures were trading at ₹743.45 on MCX in the initial hour of Tuesday morning against the previous close of ₹744.20, down by 0.10 per cent.
NCDEX
On the National Commodities and Derivatives Exchange (NCDEX), February guar gum futures were trading at ₹12,107 in the initial hour of Tuesday morning against the previous close of ₹11,935, up by 1.44 per cent.
January dhaniya futures were trading at ₹9,550 on NCDEX in the initial hour of Tuesday morning against the previous close of ₹9,756, down by 2.11 per cent.
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