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Crude oil futures traded marginally lower on Friday morning despite the US discussing possible strikes by Israel on oil facilities in Iran.
At 9.54 am on Friday, December Brent oil futures were at $77.53, down by 0.12 per cent, and November crude oil futures on WTI (West Texas Intermediate) were at $73.66, down by 0.07 per cent.
October crude oil futures were trading at ₹6195 on Multi Commodity Exchange (MCX) during the initial hour of trading on Friday, up by 0.55 per cent from the previous close of ₹6161, and November futures were trading at ₹6171, up by 0.55 per cent from the previous close of ₹6137.
On Thursday, the US President, Joe Biden, was asked by reporters whether he would support Israel striking oil facilities in Iran. Quoting his answer, a Reuters report stated: “We’re discussing that.” Recently, he had stated that he would not support any strike by Israel on Iran’s nuclear sites.
Meanwhile, Israel targeted Dahiye, a suburb of Beirut and stronghold of Hezbollah, on Thursday night. Quoting residents and security sources, Reuters report said Israel ordered people to leave their homes in parts of the district. Another report said Hezbollah official Hashem Safieddine, who is rumoured to be the successor to assassinated Hezbollah leader Hassan Nasrallah, was targeted in the air raids. Hezbollah has the backing of Iran.
The escalation of the conflict in the region has created apprehensions in the market over possible crude oil supply disruptions from the West Asia region.
However, Libya’s decision to reopen oil fields and export terminals helped alleviate the market’s concerns over possible supply disruptions. On Thursday, Libya’s eastern-based government and National Oil Corporation in Tripoli announced reopening all oilfields and export terminals. This decision was taken after the dispute over the central bank’s leadership was resolved. According to the US Energy Information Administration, Libya produced around 1.3 million barrels a day of crude oil in 2023.
October zinc futures were trading at ₹285.50 on MCX during the initial hour of trading on Friday against the previous close of ₹283.95, up by 0.55 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), October castor seed contracts were trading at ₹6845 in the initial hour of trading on Friday against the previous close of ₹6891, down by 0.67 per cent.
In the initial hour of Friday trading, October dhaniya futures were trading at ₹7170 on NCDEX, down by 1.29 per cent from the previous close of ₹7264.
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