Brent crude oil futures jumped over 6 per cent on Wednesday morning following the Russian President’s statement that the peace talks with Ukraine had hit a dead end. Besides, demand expectations from China also lent support to the energy commodity.

At the time of filing this report, June Brent oil futures ruled at $104.58, up by 6.19 per cent, and May crude oil futures on WTI quoted at $100.28, down by 0.32 per cent.

April crude oil futures were trading at ₹7,649 on the Multi Commodity Exchange (MCX) during the initial hours of trading on Wednesday morning, against the previous close of ₹7,644, up by 0.07 per cent, and May futures were trading at ₹7,636 against the previous close of ₹7,627, up by 0.12 per cent.

Stating that the peace talks with Ukraine had hit a dead end, Russian President Vladimir Putin said on Tuesday Russia would achieve all of its “noble aims” in Ukraine.

Russia, which is a major crude oil producer, has been facing sanctions from the US and other countries in Europe, which have affected supply to an already tight global market.

Chinese lockdown eased

Market reports also mentioned the partial easing of lockdowns in the Covid-hit parts of China, which will help boost demand for the commodity.

In his crude oil outlook for the day, Rahul Kalantri, VP (Commodities) of Mehta Equities Ltd, said WTI crude futures jumped more than 7 per cent to above $100 per barrel on Tuesday, recovering from a 4 per cent loss in the previous session. Domestic markets had also settled on a stronger note at ₹7,646 per barrel, up by 6.55 per cent on relief about demand in China after Shanghai eased some virus restrictions.

Also, OPEC warned it would be nearly impossible to replace Russian oil lost on account of a possible ban from the EU. The EU is reportedly drafting proposals for an oil embargo on Russia, although there was no agreement to ban Russian crude, he said.

Meanwhile, the cartel cut forecasts for both global oil consumption and supply this year. Crude oil prices were also getting support as US natural gas futures were at an over 13-year high, the highest since 2008, due to short supply from Russia, he said.

“We expect crude oil prices will remain volatile in today’s session. It has support at $98.10-$95.50 and resistance is at $102.40–104.50. In rupee terms, crude oil has support at ₹7,540-7,380, while resistance is at ₹7,840–7,980,” he said.

April zinc futures were trading at ₹378.30 on the MCX in the initial hour of Wednesday morning, against the previous close of ₹370.15, up by 2.20 per cent.

April copper contracts were trading at ₹824.40 on the MCX in the initial hour of Wednesday morning, against the previous close of ₹819.55, up by 0.59 per cent.

Dhaniya, turmeric shine

On the National Commodities and Derivatives Exchange (NCDEX), May guar gum futures were trading at ₹12,690 in the initial hour of Wednesday morning, up by 1.35 per cent against the previous close of ₹12,521.

April dhaniya contracts were trading at ₹12,800 on NCDEX in the initial hour of Wednesday morning, against the previous close of ₹12,660, up by 1.11 per cent.

May turmeric (farmer polished) futures were trading at ₹9,440 on NCDEX in the initial hour of Wednesday morning, against the previous close of ₹9,462, down by 0.23 per cent.

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