Crude oil futures traded lower on Wednesday morning following the reports of the likely suspension of Russia from the production deal of OPEC (Organization of the Petroleum Exporting Countries) and its allies. At 10.03 am on Wednesday, August Brent oil futures were at $115.88, down by 1.46 per cent; and July crude oil futures on WTI were at $115.06, up by 0.34 per cent.
June crude oil futures were trading at ₹8,929 on Multi Commodity Exchange (MCX) in the initial hour of Wednesday morning against the previous close of ₹9,026, down by 1.07 per cent; and July futures were trading at ₹8,755 as against the previous close of ₹8,853, down by 1.11 per cent.
A report in Wall Street Journal said that some OPEC members are exploring the idea of suspending the participation of Russia in the OPEC+ production deal. However, there was no formal announcement on the above-mentioned move. Such a move, if implemented, would help other major producers from the Gulf region to use their spare capacity to increase the production output of crude oil.
Zinc trades lower
It may be mentioned here that European Union (EU) has taken a decision to ban the import of crude oil from Russia following its war with Ukraine. EU intends to ban 90 per cent of the import of Russian crude oil by the end of 2022. However, EU has given a temporary exception for crude oil delivered from Russia by pipeline.
June zinc futures were trading at ₹331.40 on MCX in the initial hour of Wednesday morning against the previous close of ₹333.65, down by 0.67 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June castorseed futures were trading at ₹7,444 in the initial hour of Wednesday morning against the previous close of ₹7,402, up by 0.57 per cent. June steel contracts were trading at ₹47,050 on the NCDEX in the initial hour of Wednesday morning against the previous close of ₹48,000, down by 1.98 per cent.