With markets expecting central banks across the globe to raise interest rates, crude oil futures traded marginally up on Tuesday morning.

At 10 am on Tuesday, November Brent oil futures were at $92.11, up 0.12 per cent; and November crude oil futures on WTI were at $85.34, up 0.02 per cent.

October crude oil futures were trading at ₹6,830 on the Multi Commodity Exchange (MCX) in the initial hour of trading on Tuesday morning, against the previous close of ₹6,817, up 0.19 per cent, and November futures were trading at ₹6,817 against the previous close of ₹6803, up 0.21 per cent.

Interest hike to impact demand

The market expects the US Federal Reserve will increase the interest rate by 75 basis points on Wednesday in an effort to control inflation, which has hit a 40-year high. Apart from this, other central banks in Europe are also planning to take a decision on rate hikes during the week to curb inflation in their economies. Such hikes would bring down demand for the commodity.

On Monday, the US Energy Department said 10 million barrels of crude oil would be released from its strategic petroleum reserve (SPR) for delivery in November. The release comes at a time when the ban on the import of Russian crude oil by the European Union comes into effect in December.

In March, US President Joe Biden had announced plans to release 180 million barrels from SPR by October-end. According to the US Energy Department, 155 million barrels have been sold from SPR till now.

Citing an internal document from OPEC (the Organisation of Petroleum Exporting Countries) and its allies, known as OPEC+, a Reuters report said the organisation fell short of its production target by 3.583 million barrels a day in August. In July, OPEC+ missed its target by 2.892 million barrels a day, it said.

Jeera drops below ₹24,000

September natural gas futures were trading at ₹625.10 on MCX in the initial trading hour of Tuesday morning, against the previous close of ₹617.10, up by 1.30 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), September cottonseed oilcake contracts were trading at ₹2,598 in early trading, against the previous close of ₹2,706, down by 3.99 per cent.

September jeera futures were trading at ₹23,900 on NCDEX in the initial trading hour against the previous close of ₹24,230, down by 1.36 per cent.

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