Crude oil futures traded lower on Monday morning amid signs of easing geopolitical tensions between Israel and Iran.
At 9.56 am on Monday, September Brent oil futures were at $66.61, down by 0.28 per cent, and August crude oil futures on WTI (West Texas Intermediate) were at $65.19, down by 0.50 per cent. July crude oil futures were trading at ₹5,587 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday against the previous close of ₹5,601, down by 0.25 per cent, and August futures were trading at ₹5,488 against the previous close of ₹5,503, down by 0.27 per cent.
Brent crude prices declined by over 13 per cent last week after the US brokered a ceasefire between Israel and Iran. The 12-day war began with Israel attacking Iran’s nuclear facilities on June 13. Following this, the price of crude oil touched $80 a barrel. However, prices declined to $67 after the US attacked Iran’s nuclear facilities.
Following this, US President Donald Trump announced a ceasefire between Israel and Iran, which continues to hold now. Market fears of oil supply disruption eased after the ceasefire announcement. Iran is one of the major producers of crude oil.
The possible production output increase by OPEC+ (Organization of the Petroleum Exporting Countries and allies) in August also impacted crude oil prices. OPEC members will meet on July 6 to discuss the production output scenario of member countries.
A Reuters report, which cited four delegates, said OPEC was set to boost production by 4,11,000 barrels a day in August, following similar-size output increases for May, June and July.
Markets are also monitoring trade-related developments as July 9 is the deadline set by the US administration for finalising trade agreements.
July natural gas futures were trading at ₹313.10 on MCX during the initial hour of trading on Monday against the previous close of ₹318.70, down by 1.76 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), July jeera contracts were trading at ₹20,415 in the initial hour of trading on Monday against the previous close of ₹20,095, up by 1.59 per cent.
July guarseed futures were trading at ₹5,146 on NCDEX in the initial hour of trading on Monday against the previous close of ₹5,108, up by 0.74 per cent.