Crude oil futures traded marginally lower on Monday morning due to factors such as the drone attack on the Iranian defence facility and the likely increase in the export of crude oil from Russia in February.
At 10 am on Monday, April Brent oil futures were at $86.27, down by 0.15 per cent; and March crude oil futures on WTI were at $79.58, down by 0.13 per cent.
February crude oil futures were trading at ₹6,511 on Multi Commodity Exchange (MCX) in the initial trading hour of Monday morning against the previous close of ₹6,506, up by 0.08 per cent; and March futures were trading at ₹6,562 as against the previous close of ₹6,553, up by 0.14 per cent.
According to reports, a military industry target near Isfahan in Iran was attacked by drones over the weekend. However, there were no casualties. Quoting an unnamed US official, a Reuters report said Israel could be behind this attack. Market players feel that such attacks could escalate the tension in the region, impacting the supply of crude oil in the global markets.
Market reports noted that the loading of Urals and KEBCO (Kazakhstan Export Blend Crude Oil) from Ust-Luga port in Russia may increase to 1 million tonnes from 0.9 million tonnes during February 1-10 when compared to the corresponding period of January.
However, decline in the crude oil price was limited by the prospects of demand recovery from China.
On Saturday, China’s cabinet said that it would encourage a consumption recovery to boost the economy and imports. It also decided to speed up the rollout of foreign investment projects, maintain a stable yuan, and ease cross-border travel.
China, which is a major consumer of crude oil, was impacted by strict Covid-control measures in that country till a few weeks ago. The cabinet’s decisions will help boost the demand for crude oil in the Chinese market.
February natural gas futures were trading at ₹224.10 on MCX in the initial trading hour of Monday morning against the previous close of ₹236.70, down by 5.32 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), March jeera contracts were trading at ₹31,625 in the initial trading hour of Monday morning against the previous close of ₹30,940, up by 2.21 per cent.
April turmeric (farmer polished) futures were trading at ₹7,320 on NCDEX in the initial trading hour of Monday morning against the previous close of ₹7,388, down by 0.92 per cent.