Crude oil futures traded higher on Thursday morning following the warning by the Russian President Vladimir Putin that his country would not supply energy to the countries that supported a cap on Russian oil. This warning comes at a time when there is a tight supply situation in the global oil market.
At 10.04 am on Thursday, November Brent oil futures were at $88.80, up by 0.91 per cent; and October crude oil futures on WTI were at $82.75, up by 0.99 per cent.
September crude oil futures were trading at ₹6633 on Multi Commodity Exchange (MCX) in the initial trading hour of Thursday morning against the previous close of ₹6610, up by 0.35 per cent; and October futures were trading at ₹6652 as against the previous close of ₹6627, up by 0.38 per cent.
Media reports quoting the President of European Commission, Ursula von der Leyen, said EU will propose a price cap on Russian gas. “We must cut Russia’s revenues which Putin uses to finance this atrocious war in Ukraine,” Ursula von der Leyen said.
Speaking at an economic forum in Vladivostok, Putin said: “We will not supply gas, oil, coal, heating oil - we will not supply anything.” It may be mentioned here that nearly 30 per cent of oil requirements and 40 per cent of gas requirements of Europe are being met by Russia.
In his daily outlook, Prathamesh Mallya, AVP (Research, Non-Agri Commodities, and Currencies) of Angel One Ltd, said: “Crude prices might witness some volatility after Russia suspended gas supplies to Europe from the major pipeline amidst a stronger dollar, which might hurt the demand for crude.”
Zinc, guargum up
September zinc futures were trading at ₹283.40 on MCX in the initial trading hour of Thursday morning against the previous close of ₹280.70, up by 0.96 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), September guargum contracts were trading at ₹9695 in the initial trading hour of Thursday morning against the previous close of ₹9391, up by 3.24 per cent.
September dhaniya futures were trading at ₹11042 on NCDEX in the initial trading hour of Thursday morning against the previous close of ₹11108, down by 0.59 per cent.