Mangaluru
Crude oil futures traded lower on Monday morning as the market hoped that tension between Iran and Israel would not escalate further in West Asia.
At 9.55 am on Monday, June Brent oil futures were at $86.66, down by 0.72 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $81.62, down by 0.73 per cent.
May crude oil futures were trading at ₹6824 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday morning against the previous close of ₹6897, down by 1.06 per cent, and June futures were trading at ₹6793 against the previous close of ₹6871, down by 1.14 per cent.
Though there was apprehension in the market over increase in tension in West Asia region following the Israeli attack on Iran on Friday, it came down as Iran showed no indication of immediate plans for retaliation. This allayed fears of disruptions in crude oil supplies to the world market, leading to the decrease in the price of crude oil in the market.
Iran is one of the largest producers of crude oil. A major chunk of its production is exported to China.
However, there were market reports on Monday that mentioned rocket attacks on US-led coalition base in Syria, and attacks on Gaza by Israeli forces.
Meanwhile, the House of Representatives in the US has passed an aid package for Israel and Ukraine. Market reports said the package also includes potential sanctions against oil production in Iran.
In addition to this, latest data showed an increase in crude oil inventories in the US. Reports said that crude oil inventories increased by 2.7 million barrels in the US. Market was expecting it to increase by 1.4 million barrels.
May natural gas futures were trading at ₹165.80 on MCX during the initial hour of trading on Monday morning against the previous close of ₹166.70, down by 0.54 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), May castorseed contracts were trading at ₹5858 in the initial hour of trading on Monday morning against the previous close of ₹5830, up by 0.48 per cent.
May jeera futures were trading at ₹22010 on NCDEX in the initial hour of trading on Monday morning against the previous close of ₹22345, down by 1.50 per cent.