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Crude oil futures gained over 7 per cent, and aluminium and natural gas futures gained over 3 per cent on the Multi Commodity Exchange (MCX) on Monday morning as Brent crude topped $100 a barrel yet again on the Russia-Ukraine issue looking to aggravate further.
March crude oil futures were trading at ₹7,367 on MCX during the initial hours of trading on Monday morning against the previous close of ₹6,839, a gain of 7.72 per cent and April futures were trading at ₹7,234 against the previous close of ₹6,745, up by 7.25 per cent.
April Brent oil futures were at $103.06, up by 5.13 per cent and April crude oil futures on WTI at $97.42, up by 6.37 per cent. It is the second time in four days that Brent crude oil has crossed $100.
March natural gas futures were trading at ₹350 on MCX in the initial hour of Monday morning against the previous close of ₹337.30, up by 3.77 per cent; and April futures were trading at ₹351.80 against the previous close of ₹339.30, up by 3.68 per cent. April natural gas futures were at $4.606 on NYMEX, up by 2.67 per cent.
Russia’s standoff with Ukraine seemed to aggravate with Moscow putting its nuclear forces on alert. Russian President Vladimir Putin’s action has resulted in many nations deciding to exclude Russian banks from the SWIFT international payments system.
BP to abandon stake in Roseneft
BP, one of the major foreign investors in Russia, announced that is abandoning its stake in the Russian oil company Rosneft.
All these factors created apprehensions about the supply of crude oil and natural gas to the already tight global markets. Russia is the second-largest producer of crude oil. It supplies nearly one-third of its natural gas production to the European markets.
Aluminium, nickel gain
March aluminium contracts were trading at ₹281.35 on MCX in the initial hour of Monday morning against the previous close of ₹270.10, up by 4.17 per cent.
March nickel futures were trading at ₹1,902.70 on MCX in the initial hour of Monday morning against the previous close of ₹1,847.70, up by 2.98 per cent.
According to market reports, Russia contributes nearly 6 per cent to the global aluminium production, and around 7 per cent of the nickel mine supplies to the global markets.
On the National Commodities and Derivatives Exchange (NCDEX), March steel long contracts were trading at ₹51,100 in the initial hour of Monday morning against the previous close of ₹50360, up by 1.47 per cent.
March guar gum futures were trading at ₹10575 on NCDEX in the initial hour of Monday morning against the previous close of ₹10947, down by 3.40 per cent.
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