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Brent crude oil topped $110 a barrel again on Monday morning as the Russia-Ukraine conflict shows no signs of easing and some major oil producers are finding it difficult to meet their quotas under the OPEC supply agreement.
At the time this report was put out, May Brent oil futures were at $111.33 up by 3.33 per cent and May crude oil futures on WTI at $108.14, up by 3.43 per cent.
April crude oil futures were trading at ₹8,127 on Multi Commodity Exchange (MCX) in the initial hour of Monday morning against the previous close of ₹7,864, up by 3.34 per cent; and May futures were trading at ₹7,971 against the previous close of ₹7,708, up by 3.41 per cent.
A report on the news portal Ukrainska Pravda on Monday quoted Deputy Prime Minister of Ukraine Iryna Vereshchuk as saying: “There can be no question of any surrender, laying down of arms. We have already informed the Russian side about this.” This followed Russia’s demand on Sunday that the Ukrainian forces lay down arms in Mariupol.
Quoting an unnamed source, a Reuters report said OPEC (Organization of the Petroleum Exporting Countries) and its allies missed the production target by more than 1 million barrels a day (bpd) in February under their pact to increase production by 400,000 bpd each month.
Yemen’s Houthi rebels attacked some sites in Saudi Arabia on late Saturday and Sunday, adding more fuel to the market. The attacks also targeted an Aramco fuel depot in Jazan in the southwest of Saudi Arabia.
In his crude oil outlook for the day, Rahul Kalantri, VP (Commodities) of Mehta Equities Ltd, said crude oil prices recovered from their lows but showed weakness for the second consecutive week after oil prices climbed 7 per cent from low after the International Energy Agency said three million bpd of Russian oil and products could be shut in from next month.
Apart from that rising coronavirus cases in many countries, around 1,000 flights have been cancelled for controlling the spread of the virus. On the other hand, crude oil inventories surprisingly increased last week. However, delay in the US-Iran deal and supply concerns from Russia could support crude oil prices at lower levels, he said.
“Crude oil is having support at $101–97.50 and resistance is at $108.40–112. In rupee terms crude oil has support at ₹7,810-7,728; while resistance is at ₹8,140–8,210,” he said.
March aluminium futures were trading at ₹280.05 on MCX in the initial hour of Monday morning against the previous close of ₹272.20, up by 2.88 per cent.
Steel longs up
On the National Commodities and Derivatives Exchange (NCDEX), April steel long futures were trading at ₹60,480 in the initial hour of Monday morning against the previous close of ₹57,260, up by 5.62 per cent.
April turmeric (farmer finished) contracts were trading at ₹8,574 on NCDEX in the initial hour of Monday morning against the previous close of ₹8,658, down by 0.97 per cent.
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