Crude oil futures traded higher on Tuesday morning as geo-political tensions continued in West Asia.
At 9.53 am on Tuesday, June Brent oil futures were at $90.64, up by 0.29 per cent, and May crude oil futures on WTI (West Texas Intermediate) were at $86.61, up by 0.21 per cent.
April crude oil futures were trading at ₹7,208 on the Multi Commodity Exchange (MCX) during initial trading on Tuesday morning, up by 0.40 per cent, and May futures were trading at ₹7,155, against the previous close of ₹7,130, up by 0.35 per cent.
Iran retaliation comment
The much anticipated peace talks between Israel and Hamas in Egypt did not make any progress as both the parties failed to reach a ceasefire agreement.
On Monday, Israeli Prime Minister Benjamin Netanyahu said his country will go ahead with its plans to invade the Rafah enclave in Gaza at an unspecified date.
In addition to this, Iran reiterated its plans to retaliate against Israel, following the recent attacks on Iranian generals in Syria. Iran suspects the involvement of Israel in this attack.
These geo-political developments in West Asia created apprehensions of supply disruptions.
Meanwhile, Mexico’s oil company Pemex said it would cut crude oil exports by 330,000 barrels a day. The company wants to supply more crude to refineries in Mexico. The move would impact the supply of crude to buyers in the US, Europe, and Asia.
The market is also awaiting the release of key data from the US and China during the week to get signals on price movements.
US consumer price index inflation data and the minutes of the March meeting of the US Federal Reserve are expected on Wednesday. China’s consumer and producer inflation numbers are expected to be released on Thursday.
Mentha oil, jeera, guar gum gain
April mentha oil futures were trading at ₹909.60 on MCX during initial trading, against the previous close of ₹905.90, up by 0.41 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), April guar gum contracts were trading at ₹10,820 in the initial hour of trading on Tuesday morning, against the previous close of ₹10,772, up by 0.45 per cent.
May jeera futures were trading at ₹23,225 on NCDEX during the initial hour of trading on Tuesday morning, against the previous close of ₹23,125, up by 0.43 per cent.