Crude oil up after G7 price cap on Russian oil comes into force

Crude oil traded higher on Tuesday morning as the price cap by G7 nations on crude oil import from Russia came into effect on December 5.

At 10 am, February Brent oil futures were at $83.23, up by 0.67 per cent, and January crude oil futures on WTI were at $77.47, up by 0.70 per cent.

December crude oil futures were trading at ₹6,398 on Multi Commodity Exchange (MCX) in the early deals against the previous close of ₹6,415, down by 0.27 per cent, and January futures were trading at ₹6,454 as against the previous close of ₹6,469, down by 0.23 per cent.

EU ban

The $60-a-barrel price cap on the import of Russian crude oil, which was imposed by the G7 nations, came into force on Monday. However, Russia said it will not abide by the price cap decision and would reduce the production, if needed. This lifted the crude oil market.

Apart from this, European Union has also imposed a ban on the import of Russian oil.

Now, China has also done away with the need to show Covid negative reports in the supermarkets and offices in its capital Beijing. This latest measure to relax the restrictions comes after a series of protests in that country a few days ago. China is a major consumer of crude oil, and the move to relax Covid-related restrictions will help boost the demand for crude oil globally.

Dhaniya, guar gum gain

December zinc futures were trading at ₹276.50 on MCX in the initial deals against the previous close of ₹274.60, up by 0.69 per cent.

December dhaniya futures were trading at ₹9,858 on the National Commodities and Derivatives Exchange (NCDEX) in the opening trade against the previous close of ₹9,758, up by 1.02 per cent.

On NCDEX, December guar gum contracts were trading at ₹12,440 in the initial morning trade against the previous close of ₹12,577, down by 1.09 per cent.

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