Crude oil futures traded higher on Tuesday morning due to a halt in production in a Norway field and a decline in production in a Kazakhstan field.
At 9.53 am on Tuesday, January Brent oil futures were at $73.46, up by 0.22 per cent, and January crude oil futures on WTI (West Texas Intermediate) were at $69.31, up by 0.20 per cent.
November crude oil futures were trading at ₹5,845 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday against the previous close of ₹5,819, up by 0.45 per cent, and December futures were trading at ₹5,868 against the previous close of ₹5,836, up by 0.55 per cent.
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Equinor from Norway said that it halted production output from Johan Sverdrup oilfield in Western Europe due to an onshore power outage. Quoting a spokesperson, a Reuters report said that work to restart production was under way. However, the report did not mention when it would resume.
Meanwhile, the ongoing repair works at Tengiz oilfield in Kazakhstan led to the reduction in production output by 28-30 per cent. Quoting Kazakhstan’s Energy Ministry, a Reuters report said repairs were expected to be complete by Saturday.
In their Commodities Daily feed, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said oil prices rallied on Monday with ICE Brent setting almost 3.2 per cent higher. A softening in the US dollar supported most of the commodities complex. However, for oil, a halt of production at the 755,000 barrels a day Johan Sverdrup field in Norway due to a power outage, and a drop in production at the Tengiz field in Kazakhstan provided further upside. In addition, geopolitical risks between Russia and Ukraine have increased after the US said it would allow Ukraine to carry out long-range missile strikes on Russia, they said.
“Globally, our balance shows that the market will be in surplus through 2025. However, the size of the surplus depends on what OPEC+ decide to do when it comes to output policy for next year. The group will likely decide on this at their next meeting on December 1,” they said.
November copper futures were trading at ₹808.40 on MCX during the initial hour of trading on Tuesday against the previous close of ₹804.80, up by 0.45 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), December jeera contracts were trading at ₹25,395 in the initial hour of trading on Tuesday against the previous close of ₹25,005, up by 1.56 per cent.
December turmeric (farmer polished) futures were trading at ₹14,150 on NCDEX in the initial hour of trading on Tuesday against the previous close of ₹13,914, up by 1.70 per cent.