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Crude oil futures gained on Tuesday morning after losing more than 3 per cent in Monday’s session. Saudi Arabia’s decision to cut oil prices had impacted the crude oil prices on Monday.
At 9.53 am on Tuesday, March Brent oil futures were at $76.27, up by 0.20 per cent, and February crude oil futures on WTI (West Texas Intermediate) were at $70.81, up by 0.06 per cent.
January crude oil futures were trading at ₹5,898 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹5,863, up by 0.60 per cent, and February futures were trading at ₹5,934 as against the previous close of ₹5,902, up by 0.54 per cent.
Rising West Asia tensions
Despite the price cuts by Saudi Arabia, crude oil prices gained on the back of rising tensions in the West Asia following the Israel-Hamas war, and the subsequent attacks on merchant vessels by the Houthis in Red Sea region.
On Monday, the US Secretary of State, Antony Blinken, reached Israel. Blinken’s Israel visit follows his efforts to hold talks with the Arab leaders to find a solution to end the Israel-Hamas war.
Crude oil futures lost more than 3 per cent in major global commodity exchanges on Monday as Saudi Arabia (one of the major producer of crude oil in the global market) decided to cut prices by $2 a barrel.
Meanwhile, Reuters reported that crude oil output from OPEC (Organisation of the Petroleum Exporting Countries) and its allies, known as OPEC+, saw an unexpected increase in December. As reported earlier, some OPEC+ members have been trying to cut production output in an effort to bring stability in the crude oil market. However, the Reuters report indicates that there has been an increase in production output despite the best efforts by some member countries to control it.
Dhaniya, castorseed rise
January natural gas futures were trading at ₹241 on MCX against the previous close of ₹236.70, up by 1.82 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), January castorseed contracts were trading at ₹5,697 against the previous close of ₹5620, up by 1.37 per cent.
January dhaniya futures were trading at ₹7014 on NCDEX against the previous close of ₹6970, up by 0.63 per cent.
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