Crude oil futures traded lower on Tuesday morning as the market did not see an immediate escalation of tensions between Israel and Hezbollah in West Asia.
At 9.53 am on Tuesday, October Brent oil futures were at $78.71, down by 0.43 per cent, and September crude oil futures on WTI (West Texas Intermediate) were at $75.47, down by 0.45 per cent.
August crude oil futures were trading at ₹6,330 on the Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday, against the previous close of ₹6,351, down by 0.33 per cent, and September futures were trading at ₹6,268, against the previous close of ₹6,286, down by 0.29 per cent.
The recent rocket strike in Israeli-occupied Golan Heights had led to the death of 12 children and teenagers. It was alleged that Hezbollah was behind this attack, though Hezbollah denied it. Media reports said that though Israel is planning to retaliate, it will not be an all-out war with Hezbollah.
Reports also said that the US is making efforts to dissuade Israel from attacking major civilian infrastructure in Lebanon.
Market players hope that easing of tensions in West Asia will bring down the risks associated with crude oil supply disruptions from the region.
Meanwhile, a poll by the news agency Reuters showed that manufacturing activity in China is likely to shrink for the third month in July. A Reuters report said Citi cut China’s growth forecast from 5 per cent to 4.8 per cent.
The recent economic indicators from China also failed to impress the markets. Recent data indicates a decline in China’s fuel imports by 11 per cent in the first six months of 2024. All these factors created apprehensions over the demand for crude oil from the second largest consumer in the global market.
August lead futures were trading at ₹185.90 on MCX during the initial hour of trading on Tuesday, against the previous close of ₹187, down by 0.59 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), August jeera contracts were trading at ₹27,150 in the initial hour of trading on Tuesday, against the previous close of ₹26,760, up by 1.46 per cent.
August dhaniya futures were trading at ₹7,158 on NCDEX in the initial hour of trading on Tuesday, against the previous close of ₹7,216, down by 0.80 per cent.