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Crude oil futures traded higher in global markets on Tuesday morning following the reported moves of the US and European countries to impose additional sanctions on Russia against the alleged atrocities on civilians in Ukraine.
At the time of filing this report, June Brent oil futures ruled at $108.73, up 4.15 per cent, and May crude oil futures on WTI quoted at $104.78, up by 1.45 per cent.
April crude oil futures were trading at ₹7,918 on Multi Commodity Exchange (MCX) in the initial hour of Tuesday morning against the previous close of ₹7,715, up by 2.63 per cent, and May futures were trading at ₹7,833 against the previous close of ₹7,644, up by 2.47 per cent.
Reports said moves to impose additional sanctions on Russia overshadowed factors such as the coordinated release of crude oil from strategic inventories by the consumers, the rise in the number of Covid cases in China, and the UN-brokered truce between Houthis and the Saudi-led coalition. The above factors had helped cool down the price of crude oil in the global markets.
Reports also said the moves to revive the Iran nuclear deal, which had the potential for increasing the export of Iranian crude oil to the global market, appears to have stalled now.
Saudi crude price
Meanwhile, Saudi Arabia, which is one of the major producers of crude oil, has decided to increase the price of crude oil.
Quoting the pricing document, Reuters said in a report that Saudi Aramco has increased its May official selling price to Asia for its Arab Light Crude to $9.35 a barrel above Oman and Dubai crude.
In his crude oil outlook for the day, Rahul Kalantri, VP (Commodities) of Mehta Equities Ltd, said, “Crude oil settled on positive note on Monday as the US and Europe prepared to impose a fresh wave of sanctions on Russia for alleged atrocities committed by its forces against civilians in Ukraine. The possibility of new sanctions is offsetting the impact in the global crude market of a vast release by the US from the nation’s strategic petroleum reserves in a bid to tame prices, ease the burden on consumers, and peg back inflation. Other countries have said that they will also make oil releases.”
“We expect crude oil prices to remain volatile but in broader range, that is WTI crude oil $98-$107. Crude oil is having support at $100.20-$98.10 and resistance at $104.90–107.50. In rupee terms, crude oil has support at ₹7,550-7,420; while resistance is at ₹7,920–8,120,” he added.
April natural gas contracts were trading at ₹442.50 on MCX in the initial hour of Tuesday morning against the previous close of ₹435.50, up by 1.61 per cent.
Dhaniya, turmeric gain
On the National Commodities and Derivatives Exchange (NCDEX), April dhaniya futures were trading at ₹12,280 in the initial hour of Tuesday morning against the previous close of ₹11,886, up by 3.31 per cent.
April turmeric (farmer polished) contracts were trading at ₹9,440 on NCDEX in the initial hour of Tuesday morning against the previous close of ₹9,256, up by 1.99 per cent.
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