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Crude oil traded higher on Tuesday morning as Monday’s earthquake led to the halting of export operations at one of the oil terminals in Turkey.
At 10 am on Tuesday, April Brent oil futures were up 0.95 per cent at $81.76 and March crude oil futures on WTI were at $74.90, a rise of 1.07 per cent.
February crude oil futures were trading at ₹6,211 on Multi Commodity Exchange (MCX) in the initial trading hour of Tuesday morning against the previous close of ₹6,131, up by 1.30 per cent, and March futures were trading at ₹6,260 as against the previous close of ₹6,185, up by 1.21 per cent.
Also read:‘Russia equipped to meet India’s rising crude oil demand’
Ships Azeri crude oil
With Turkey witnessing a major earthquake on Monday, the Ceyhan oil terminal in Turkey with a capacity to export 1 million barrels per day stopped its operation. The market was informed that the terminal will be closed during February 6-8. This terminal exports Azeri crude oil to the international market.
According to reports, Kurdistan Regional Government in Iraq also stopped oil supply through the pipeline that runs from Iraq’s northern Kirkuk fields to Ceyhan following this major earthquake.
Added to this, the International Energy Agency’s (IEA) optimism that economic recovery in China will help boost demand for crude oil in the global markets boosted the prices of the commodity.
Also read:IEA’s faith in China’s recovery boosts crude oil prices
The IEA Executive Director Fatih Birol told Reuters over the weekend that the agency is expecting about half of the growth in global oil demand this year will be from China.
The market is now waiting for the discussion of the US Fed Chair Jerome Powell at the Economic Club of Washington later in the day. The market will be closely watching his comments on the US economy.
Guar gum, cottonseed oil cake gain
February natural gas futures were trading at ₹206.80 on MCX in the initial trading hour of Tuesday morning against the previous close of ₹200.90, up by 2.94 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), February cottonseed oilcake contracts were trading at ₹2792 in the initial trading hour of Tuesday morning against the previous close of ₹2769, up by 0.83 per cent.
February guar gum futures were trading at ₹12,446 on NCDEX in the initial trading hour of Tuesday morning against the previous close of ₹12,521, down by 0.60 per cent.
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