Crude oil futures rose on Monday morning due to escalating tensions in West Asia following the ouster of the Syrian president Bashar al-Assad.
At 9.57 am on Monday, February Brent oil futures were at $71.41, up by 0.41 per cent, and January crude oil futures on WTI (West Texas Intermediate) were at $67.50, up by 0.45 per cent.
December crude oil futures were trading at ₹5731 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday against the previous close of ₹5726, up by 0.09 per cent, and January futures were trading at ₹5738 against the previous close of ₹5731, up by 0.12 per cent.
On Sunday, rebel forces got control of the capital Damascus in Syria. This ended Bashar al-Assad family’s 50-year rule of the country. Reports said the Syrian President, Bashar al-Assad, fled the country.
The latest developments in Syria increased the instability in West Asia region as the ouster of Bashar al-Assad would limit the control of Iran in West Asia region.
Market players are now watching how the regime change in Syria will impact the oil production in the region. Market reports said oil production was almost eroded in Syria due to the long-running civil war in that country. Market players hope that oil production could increase under a moderate government in Syria.
However, increase in crude oil prices was limited by latest data on inflation in China. According to the National Bureau of Statistics of China, annual inflation rate declined to 0.2 per cent in November 2024 from 0.3 per cent in October. Market was forecasting it at 0.5 per cent.
Market reports said the slowdown highlighted mounting deflation risks in China despite recent stimulus measures from the government and a supportive monetary policy stance by the Chinese central bank. China is one of the major consumers of crude oil in the global market.
December natural gas futures were trading at ₹274.30 on MCX during the initial hour of trading on Monday against the previous close of ₹262, up by 4.69 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June turmeric (farmer polished) contracts were trading at ₹15220 in the initial hour of trading on Monday against the previous close of ₹14854, up by 2.46 per cent.
January jeera futures were trading at ₹24040 on NCDEX in the initial hour of trading on Monday against the previous close of ₹23840, up by 0.84 per cent.