Crude oil futures, traded lower on Tuesday morning, as the market continued to analyse developments in West Asia, following the death of Iran’s President, and the health concerns of the Saudi king.

At 9.54 am on Tuesday, July Brent oil futures were at $83.27, down by 0.53 per cent, and July crude oil futures on WTI (West Texas Intermediate), were at $78.85, down by 0.57 per cent.

June crude oil futures, were trading at ₹6,583 on the Multi Commodity Exchange (MCX) during initial trading on Tuesday morning against the previous close of ₹6,579, up by 0.06 per cent, and July futures were trading at ₹6,581 against the previous close of ₹6,586, down by 0.08 per cent.

US Fed officials’ signals

The Saudi state news agency said, on Sunday that King Salman will undergo treatment, at Al Salam Palace in Jeddah for a lung inflammation. It is reported that the king would be treated with antibiotics until the inflammation subsides. This forced the crown prince of Saudi Arabia, Mohammed bin Salman, to postpone his trip to Japan. Saudi Arabia is the top producer of crude oil in the world.

The President of Iran, Ebrahim Raisi, was killed in a helicopter crash, while returning back from Azerbaijan on Sunday. Iran is one of the major oil producing nations in the world.

Market continued to review these developments, and it did not foresee any immediate signals of supply disruptions from these oil producing nations.

The recent statements of some US officials on the interest rate front, made the market to feel, that it would take some more time for the Federal Reserve to start interest rate cuts.

The Vice Chair of the US Federal Reserve, Philip Jefferson, said that it was too early to tell if the inflation slowdown is long lasting, and the Vice Chair, Michael Barr, said restrictive policy needs more time.

The President of Atlanta Fed, Raphael Bostic, said, it would take a while for the Fed to be confident that price growth slowdown is sustainable.

Turmeric, jeera sizzle

Lower interest rates, would bring down the borrowing costs. This, in turn, would help boost the demand for commodities such as crude oil, leading to economic growth.

May mentha oil futures were trading at ₹931.90 on MCX, against the previous close of ₹925.30, up by 0.71 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), June jeera contracts were trading at ₹28,815 against the previous close of ₹27,840, up by 3.50 per cent.

June turmeric (farmer polished) futures, were trading at ₹18,078 on NCDEX, against the previous close of ₹17,880, up by 1.11 per cent.

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