Crude oil futures traded higher on Tuesday morning as the market expressed concerns over the potential impact of Canadian wildfires on crude oil supplies.

At 9.52 am on Tuesday, July Brent oil futures were at $83.48, up by 0.14 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $79.23, up by 0.14 per cent.

May crude oil futures were trading at ₹6,618 on Multi Commodity Exchange (MCX) during initial trading on Tuesday morning against the previous close of ₹6,594, up by 0.36 per cent, and June futures were trading at ₹6,591 against the previous close of ₹6571, up by 0.30 per cent.

Iraq to comply with output cuts

Wildfires in Western Canada have created apprehensions in the market over the potential oil supply disruptions. People from Fort McMurray of Alberta, which is closest to one of the major oil-sands operations of Canada, were put on alert following the wildfires in the region.

No operational disruption was reported from the region due to wildfires. However, market fears that such wildfires could impact Canada’s oil supply sector, as Canada’s industry plays important role in North American crude oil market.

Wildfires had brought down the crude oil production by around 3,00,000 barrels a day in 2023, and by around 1 million barrels a day in 2016.

Meanwhile, Iraq has said that it will comply with the decision of Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, on oil production output cuts in the next OPEC+ meeting scheduled on June 1.

This is reversal of earlier statement of Hayyan Abdul Ghani, Oil Minister of Iraq, where he said that his country had made enough voluntary reductions. He was quoted in the media saying that Iraq would not agree for any new production output cuts.

Jeera fizzles

May natural gas futures were trading at ₹197.80 on MCX against the previous close of ₹196.60, up by 0.61 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), May cottonseed oilcake contracts were trading at ₹2571 against the previous close of ₹2595, down by 0.92 per cent.

June jeera futures were trading at ₹27,160 on NCDEX in the initial hour of trading on Tuesday morning against the previous close of ₹27,300, down by 0.51 per cent.

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