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Crude oil futures traded lower on Monday morning following media reports that Israel and Hezbollah are exploring a peace deal to end hostilities in the region.
At 9:56 a.m. on Monday, February Brent oil futures were at $74.34, down by 0.39 per cent, and January crude oil futures on WTI (West Texas Intermediate) were at $70.95, down by 0.41 per cent.
December crude oil futures were trading at ₹5998 on the Multi Commodity Exchange (MCX) during the initial hour of Monday, down by 0.50 per cent against the previous close of ₹6028, and January futures were trading at ₹5981 against the previous close of ₹6008, down by 0.45 per cent.
Axios reported on Sunday that Israel and Hezbollah are close to signing a peace deal to end hostilities in the region, citing officials from Israel and the US. The Times of Israel reported that Israeli Prime Minister Benjamin Netanyahu was holding high-level talks over the peace deal. Media reports said this peace deal was brokered by US officials.
Market players fear that any escalation in tensions in West Asia could impact the region’s crude oil supply. A peace deal would help ease these tensions.
Meanwhile, Iran has decided to increase its nuclear fuel-making capacity after the UN atomic watchdog, the International Atomic Energy Agency (IAEA), censured it. Market players believe that Donald Trump may decide to impose sanctions on Iran, taking into account developments such as the IAEA’s censure and Iran’s response. Any sanction could reduce Iran’s daily supply of 1 million barrels of crude oil.
December natural gas futures were trading at ₹297.10 on MCX during the initial hour of Monday’s trading, up 6.60 per cent from the previous close of ₹278.70.
On the National Commodities and Derivatives Exchange (NCDEX), April dhaniya contracts were trading at ₹8510 in the initial hour of trading on Monday against the previous close of ₹8454, up by 0.66 per cent.
In the initial hour of Monday’s trading, December cottonseed oilcake futures were trading at ₹2,690 on NCDEX, down 0.52 percent from the previous close of ₹2,704.
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