Crude oil futures traded lower on Tuesday morning due to profit booking after witnessing more than 3 per cent jump on Monday.
At 9.55 am on Tuesday, December Brent oil futures were at $79.65, down by 1.58 per cent, and November crude oil futures on WTI (West Texas Intermediate) were at $75.96, down by 1.53 per cent.
October crude oil futures were trading at ₹6385 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday against the previous close of ₹6475, down by 1.39 per cent, and November futures were trading at ₹6345 against the previous close of ₹6430, down by 1.32 per cent.
Both Brent and WTI crude oil futures witnessed more than 3 per cent jump on Monday. This was in addition to last week’s rally of more than 8 per cent.
Meanwhile, tension in West Asia continued to escalate as Hezbollah fired missiles into the territory of Israel on Monday. Last week, Iran had fired several missiles against Israel marking its direct entry in the conflict in West Asia.
Market fears that the escalating tensions could disrupt crude oil supplies from West Asia as Iran is a major producer of crude oil in the world market.
Market reports noted that even if Israel attacks the Iranian oil facilities, Organization of Petroleum Exporting Countries (OPEC) has around 7 million barrels a day of spare production capacity. This would help meet the requirements of the global markets even if there is disruption in supplies from Iran, the reports said.
Crude oil market is also keenly watching the impact of Hurricane Milton on oil production in the US. This hurricane will pass through Gulf of Mexico before making landfall at the west coast of Florida during the week. Forecasts indicate that the hurricane is likely to miss most oil infrastructure in the Gulf of Mexico. However, many ports in the region are imposing restrictions. Market players feel that such restrictions could impact shipments of oil from the region.
October copper futures were trading at ₹838.80 on MCX during the initial hour of trading on Tuesday against the previous close of ₹853.85, down by 1.76 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), October guargum contracts were trading at ₹11062 in the initial hour of trading on Tuesday against the previous close of ₹10940, up by 1.12 per cent.
October jeera futures were trading at ₹26800 on NCDEX in the initial hour of trading on Tuesday against the previous close of ₹26605, up by 0.73 per cent.