Crude oil futures recover after Tuesday’s fall

Crude oil futures traded higher on Wednesday morning as the market remained uncertain about developments in West Asia. Crude oil prices witnessed a fall of more than 4 per cent in Tuesday’s session.

At 9.56 am on Wednesday, December Brent oil futures were at $74.47, up by 0.30 per cent, and November crude oil futures on WTI (West Texas Intermediate) were at $70.83, up by 0.35 per cent.

October crude oil futures were trading at ₹5953 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday against the previous close of ₹5923, up by 0.51 per cent, and November futures were trading at ₹5931 against the previous close of ₹5897, up by 0.58 per cent.

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A media report said on Tuesday that Israel may not attack the nuclear and oil facilities in Iran, and it may attack military targets in that country. This report eased the concerns over a possible disruption in the oil supplies from the region. Following this, there was a decline in the price of the commodity in the market. Iran is a major producer of crude oil.

However, the situation still remains uncertain as the Prime Minister of Israel, Benjamin Netanyahu, said that Israel has the right to retaliate against Iranian attacks.

Meanwhile, the monthly report of the International Energy Agency (IEA) has forecasted a weak demand outlook for the commodity.

IEA’s October Oil Market Report said the world oil demand is on track to expand by just shy of 900,000 barrels a day in 2024 and close to 1 million barrels a day in 2025, marking a sharp slowdown on the roughly 2 million barrels a day seen over the 2022-2023 post-pandemic period.

China underpins the deceleration in growth, accounting for around 20 per cent of global gains both this year and next year, compared to almost 70 per cent in 2023, it said.

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October aluminium futures were trading at ₹237.75 on MCX during the initial hour of trading on Wednesday against the previous close of ₹235.50, up by 0.96 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), November jeera contracts were trading at ₹25400 in the initial hour of trading on Wednesday against the previous close of ₹25500, down by 0.39 per cent.

December turmeric (farmer polished) futures were trading at ₹13920 on NCDEX in the initial hour of trading on Wednesday against the previous close of ₹13842, up by 0.56 per cent.