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Crude oil futures traded lower on Tuesday morning as the reports indicated a relaxation in US sanctions on oil industry in Venezuela.
At 9.52 a.m. on Tuesday, December Brent oil futures were at $89.54, down by 0.12 per cent, and December crude oil futures on WTI (West Texas Intermediate) were at $85.03, down by 0.27 per cent.
October crude oil futures were trading at ₹7,200 on Multi Commodity Exchange (MCX) on Tuesday morning against the previous close of ₹7,239, down by 0.54 per cent, and November futures were trading at ₹7,105 as against the previous close of ₹7,138, down by 0.46 per cent.
Help ship oil
Market reports said the Venezuelan government and the opposition in that country are likely to begin long-suspended talks. Such a move may lead US to relax sanctions on Venezuela. This could help Venezuela to export crude oil to the world market.
The US had imposed sanctions on Venezuela in 2019 as a measure to punish the government, led by President Nicolas Maduro. Market reports noted that the US considered the 2018 elections in Venezuela a sham due to human rights violations.
On Monday, the Washington Post reported that the US would lift sanctions on Venezuela’s oil exports in exchange for steps to ensure Venezuela holds fair presidential elections next year.
The market is also keeping a close watch on the war between Israel and Hamas. At present, the market is expecting that other countries in the Middle East may not participate in the war.
However, Iran’s post on the social media platform X had warned the world community on the expansion of war if Israel does not stop attack on Gaza.
Any escalation in the conflict in the Middle East could lead to a disruption in the crude oil supply to the world market.
Guar gum, turmeric gleam
October natural gas futures were trading at ₹259.30 on MCX against the previous close of ₹261.80, down by 0.95 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), October guar gum contracts were trading at ₹11,511 on Tuesday morning against the previous close of ₹11,270, up by 2.14 per cent.
October turmeric (farmer polished) futures were trading at ₹12,972 on NCDEX on Tuesday morning against the previous close of ₹12,700, up by 2.14 per cent.
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