Comments
Crude oil futures increased by over two per cent on the Multi Commodity Exchange (MCX) during the initial hours of trading on Wednesday morning as the global market indicated robust demand despite the impact of the Omicron variant of Coronavirus.
February crude oil futures were trading at ₹6,430 on MCX at the opening against the previous close of ₹6,299, up by 2.08 per cent.
March Brent oil futures were at $88.58, up by 1.07 per cent; and March crude oil futures on WTI at $86.58 up by 1.15 per cent.
The market is anticipating a tight oil supply outlook amidst various geo-political developments. The latest development in this regard is the outage on a pipeline from Iraq to Turkey.
According to reports, pipeline operator Botas from Turkey cut oil flows on the Kirkuk-Ceyhan pipeline after an explosion on the system. This pipeline transports crude from Iraq to Turkey’s Ceyhan port for export. However, the report said that the cause of explosion in the pipeline is not known.
This comes at a time when OPEC (Organization of the Petroleum Exporting Countries) and its allies are finding it difficult to reach the agreed production output for February, as the January 4 meeting of the group had decided to increase the supply to 400,000 barrels a day for February.
January menthaoil contracts were trading at ₹985 in the initial hour of Wednesday morning against the previous close of ₹985.90, down by 0.09 per cent.
NCDEX
On the National Commodities and Derivatives Exchange (NCDEX), January castorseed futures were trading at ₹6,350 in the initial hour of Wednesday morning as against the previous close of ₹6236, up by 1.83 per cent.
February cottonseed oilcake futures were trading at ₹3315 on NCDEX on Wednesday morning against the previous close of ₹3,322, down by 0.21 per cent.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.