Commodities

Ukraine factor pushes up crude oil futures

BL Mangaluru Bureau | | Updated on: Feb 14, 2022

Crude oil market is already facing problems in supplies to the global consumers as the OPEC+ finds it difficult to hike output

The statement of the US National Security Advisor on the possible invasion of Ukraine by Russia has resulted in the price of crude oil futures across the globe.

March crude oil futures were trading at ₹7,000 a barrel on the Multi Commodity Exchange (MCX) during the initial hours of trade on Monday morning against the previous close of ₹6,818 — up by 2.67 per cent, and February futures were trading at ₹7,118 against the previous close of ₹6,921 — up by 2.85 per cent.

April Brent oil futures were quoted at $95.47, up by 1.09 per cent and March crude oil futures on WTI at $94.35, up by 1.34 per cent.

Reports quoting the US National Security Advisor Jake Sullivan said Russia could invade Ukraine “any day now”. Reports quoting Sullivan’s statement to CNN on the possible invasion of Ukraine by Russia said: “We cannot perfectly predict the day, but we have now been saying for some time that we are in the window.”

Any invasion by Russia could lead to the US and European sanctions on that country. This development could affect the supply of crude oil to the global market, as Russia is one of the major crude oil suppliers.

The crude oil market is already facing problems in supplies to the global consumers. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, commonly known as OPEC+, are finding it difficult to increase their production output inspite of their assurances to increase the production to 400,000 barrels a day.

On MCX, February natural gas futures were trading at ₹312.20 during the initial trading hours against the previous close of ₹295.30, up by 5.72 per cent, and March futures were trading at ₹311.50 against the previous close of ₹295.60, up by 5.38 per cent.

The ongoing tension between Russia and Ukraine can impact natural gas markets also, as the markets fear that any sanctions on Russia could impact the supplies to some European markets.

Dhaniya, jeera up

On the National Commodities and Derivatives Exchange (NCDEX), April dhaniya futures were trading at ₹11,050 per quintal in the initial hour of Monday morning as against the previous close of ₹10,838, up by 1.96 per cent.

March jeera futures were trading at ₹21,105 on NCDEX in the initial hour of Monday morning as against the previous close of ₹20,860, up by 1.17 per cent.

February soyabean futures were trading at ₹6,640 on NCDEX in the initial hour of Monday morning as against the previous close of ₹6,643, down by 0.05 per cent.

Published on February 14, 2022
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