Crude oil futures traded lower on Tuesday morning following a report that Israel may not attack the oil facilities in Iran.
At 9.54 am on Tuesday, December Brent oil futures were at $75.13, down by 3.01 per cent, and November crude oil futures on WTI (West Texas Intermediate) were at $71.59, down by 3.03 per cent.
October crude oil futures were trading at ₹6030 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday against the previous close of ₹6,245, down by 3.44 per cent, and November futures were trading at ₹6,000 against the previous close of ₹6,211, down by 3.40 per cent.
A Washington Post report, which quoted two officials, said that Benjamin Netanyahu, Prime Minister of Israel, has told Joe Biden, US President, that Israel is willing to attack military targets in Iran and not the nuclear or oil facilities.
This report eased concerns over possible supply disruptions from West Asia, as Iran is a major oil producer. Any attack on oil facilities could impact the supply to global markets.
Meanwhile, the monthly oil market report by the OPEC (Organization of the Petroleum Exporting Countries) revised down the global oil demand growth forecast for 2024 by 1,06,000 barrels a day to 1.9 million barrels a day, year on year. It said this forecast is still above the historical average of 1.4 million barrels a day before the Covid.
The forecast for world oil demand growth in 2025 is also revised down by 102,000 barrels a day to 1.6 million barrels a day, year on year.
October natural gas futures were trading at ₹207.80 on MCX during the initial hour of trading on Tuesday against the previous close of ₹210.90, down by 1.47 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), December turmeric (farmer polished) contracts were trading at ₹13850 in the initial hour of trading on Tuesday against the previous close of ₹13,762, up by 0.64 per cent.
October guargum futures were trading at ₹11,280 on NCDEX in the initial hour of trading on Tuesday against the previous close of ₹11,343, down by 0.56 per cent.