Crude oil futures traded in a narrow range in the early trade on Tuesday. Crude oil futures went up by more than 4 per cent at global exchanges in Monday’s session following the developments related to supplies.
At 9.55 am, June Brent oil futures were at $77.36, down by 0.51 per cent; and May crude oil futures on WTI were at $72.70, down by 0.15 per cent.
April crude oil futures were trading at ₹5,994 on Multi Commodity Exchange (MCX) in the morning session against the previous close of ₹5978, up by 0.27 per cent; and May futures were trading at ₹6,025 against the previous close of ₹6,008, up by 0.28 per cent.
Supply concerns helped limit the decline in prices on Tuesday. The Turkey’s decision to stop pumping crude oil from Kurdistan via a pipeline helped boost the price in Monday’s session. The decision was based on an arbitration that said Iraq’s approval was needed to transport the crude from Kurdistan.
Export of around 4.50 lakh barrels a day of crude oil from Kurdistan region to Ceyhan port in Turkey came to a standstill following this.
Also, transport strikes in Germany and France also added to the supply constraints. Market reports noted that strikes in parts of Europe may impact the supply in the short term.
Market reports also noted that the banking crisis in the US is improving now after the recent failures of some banks. A decision to acquire the failed Silicon Valley Bank by the First Citizens BancShares Inc was announced on Monday. The failure of banks in the US and Europe had impacted the markets, including crude oil market last week.
March natural gas futures were trading at ₹185.90 on MCX in the initial trading hour on Tuesday against the previous close of ₹185, up by 0.49 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), April cottonseed oilcake contracts were trading at ₹2,710 on Tuesday morning against the previous close of ₹,2680, up by 1.12 per cent.
April guargum futures were trading at ₹11,861 on NCDEX in early trade today against the previous close of ₹11,734, up by 1.08 per cent.
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