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Crude oil futures traded higher on Tuesday morning as supply remained tight in global markets.
At 10.05 am on Tuesday, September Brent oil futures were at $105.79, up by 4.57 per cent; and September crude oil futures on WTI were at $98.93, down by 0.49 per cent.
August crude oil futures were trading at ₹7,927 on Multi Commodity Exchange (MCX) in the initial hours of Tuesday against the previous close of ₹7,918, up by 0.11 per cent; and September futures were trading at ₹7,723 as against the previous close of ₹7,744, down by 0.27 per cent.
The apprehension that a global recession would impact crude oil demand was overtaken by the tight supply in the global market. This helped futures trade higher on some global exchanges.
No commitment from Saudi
The visit of US President Joe Biden to Saudi Arabia did not yield any positive results as Saudi leaders did not promise to increase crude oil production. Saudi ministers said the OPEC (Organization of the Petroleum Exporting Countries) and its allies would base their decisions on market factors.
Quoting the Iraqi oil minister, a Bloomberg report said the price of crude oil will remain above $100 a barrel for the rest of the year and stay high the next few years.
A weaker US dollar also lifted market sentiments. Added to these developments, there is speculation that the Federal Reserve’s interest rate hike would be less than expected.
Zinc, castorseed drop
July zinc futures were trading at ₹271.75 on MCX in the initial hours of Tuesday against the previous close of ₹275.70, down by 1.43 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), July cottonseed oilcake futures were trading at ₹2,563 in the initial hours of Tuesday against the previous close of ₹2,546, up by 0.67 per cent.
August castorseed contracts were trading at ₹7,256 on NCDEX in the initial hours of Tuesday against the previous close of ₹7,292, down by 0.49 per cent.
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