Crude oil futures traded lower on Thursday morning as the US eased sanctions on Venezuela. Additionally, concerns over an oil embargo on Israel faded as the Organization of the Petroleum Exporting Countries (OPEC) did not show interest in the matter.
At 9.54 am on Thursday, December Brent oil futures were at $91.08, down 0.46 per cent; and December crude oil futures on WTI (West Texas Intermediate) were at $87.03, down by 0.28 per cent.
October crude oil futures were trading at ₹7,335 on Multi Commodity Exchange (MCX) in the initial trading hour of Thursday morning against the previous close of ₹7,365, down 0.41 per cent; and November futures were trading at ₹7,251 as against the previous close of ₹7,275, down by 0.33 per cent.
The US issued a six-month license for transactions in the energy sector in Venezuela after the Venezuelan government and the opposition parties in the country agreed to conduct a fair election in 2024.
In 2019, the US imposed sanctions on Venezuela to punish Nicolas Maduro’s government, as it felt the 2018 elections in that country were a sham due to human rights violations.
Easing of sanctions by the US would help Venezuela to export crude oil to the world market. Different geo-political tensions are affecting the crude oil market in the world leading to tighter supply situations. Oil exports from Venezuela would help reduce the tight supply situation to some extent.
On Wednesday, Iran had called for an oil embargo on Israel following its war with Hamas. However, a Reuters report, which quoted sources, said OPEC is not likely to take any immediate action in this matter. Iran is also a member of Nicolas Maduro’s governmen.
Meanwhile, crude oil inventories in the US declined in the week ending October 13. The weekly petroleum status report by the US EIA (Energy Information Administration) said that the US commercial crude oil inventories decreased by 4.5 million barrels from the previous week. At 419.7 million barrels, US crude oil inventories were about 5 per cent below the five-year average for this time of year.
October zinc futures were trading at ₹218.40 on MCX in the initial trading hour of Thursday morning against the previous close of ₹219.60, down 0.55 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), November guar gum contracts were trading at ₹11,780 in the initial trading hour of Thursday morning against the previous close of ₹11,869, down 0.75 per cent.
November jeera futures were trading at ₹56,160 on NCDEX in the initial trading hour of Thursday morning against the previous close of ₹56,365, down by 0.36 per cent.