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Crude oil and natural gas futures gained significantly on Thursday morning as Russia announced its troops will enter Ukraine.
March crude oil futures were trading at ₹7,291 on the Multi Commodity Exchange (MCX) during the initial hours of trading on Thursday morning against the previous close of ₹6,879, up by 5.99 per cent; and April futures were trading at ₹7,198 against the previous close of ₹6,805, up by 5.78 per cent.
April Brent oil futures were at $101.23 a barrel, up by 4.53 per cent and May futures on WTI at $98.11 up by 4..53 per cent.
On Thursday, Russian President Vladimir Putin announced that Russia would launch a military operation in Ukraine. Following this, news agencies reported explosions in Kyiv. Putin said Russia’s goal was not to occupy Ukraine, but to protect residents of eastern Ukraine.
March natural gas futures were trading at ₹361 in the initial hour of Thursday morning against the previous close of ₹346.60, up by 5.99 per cent; and April futures were trading at ₹363.70 against the previous close of ₹343.20, up by 5.97 per cent. April natural gas futures were at $4.791 on NYMEX, up by 4.42 per cent.
Russia is the key supplier of crude oil and natural gas to the global markets. Russia, which is the second-largest producer of crude oil, sells a significant portion to European countries. Nearly one-third of Russian natural gas is being supplied to the European markets.
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US warns Putin of ‘significant consequences’ if Russia invades Ukraine
Notes that Russia’s two largest banks weren’t part of the sanctions announced recentlyUS and European countries had warned of sanctions on Russia, if it initiates attack against Ukraine. On Tuesday, US and Britain had imposed sanctions on some Russian banks after Russia sent forces to eastern Ukraine.
Further sanctions on Russia would impact the supply of crude oil to the already tight global markets. Mounting tensions between Russia and Ukraine had led to the crude oil prices to go up in the past several weeks.
March cotton contracts were trading at ₹36,900 on MCX in the initial hour of Thursday morning against the previous close of ₹37,290, down by 1.05 per cent.
Guargum drops
On the National Commodities and Derivatives Exchange (NCDEX), March guargum futures were trading at ₹10,850 in the initial hour of Thursday morning against the previous close of ₹11,255, down by 3.60 per cent.
March guar seed contracts were trading at ₹5,870 on NCDEX in the initial hour of Thursday morning against the previous close of ₹6,023, down by 2.54 per cent.
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